A Study On The Motivation And Influence Of Major Shareholders' Reduction

In 2005,the reform of non tradable shares was carried out in China.As a result,the original non tradable shares were also circulated.But correspondingly,the profit-making mechanism of the former major shareholders of non tradable shares has changed from focusing solely on the increase of the company's net assets,to focusing on the change of the stock price in the secondary market,and finally obtaining the excess income by reducing the shares in the secondary market.As an important part of listed companies,family companies have gradually increased their share in recent years.Because the majority shareholders of the family business are family members and hold important positions in the company,they are more familiar with the company's operating conditions,and the family businesses are mostly family holdings.The other shareholders' low balance of equity with the major shareholders makes the family business large.Shareholders are more likely to reduce their holdings.Existing literature studies the reduction of major shareholders,the division of major shareholders is more general,and there is still insufficient research on the reduction of major shareholders of family companies.Based on the principal-agent theory,the information asymmetry theory and the equity balance theory,this article studies Wanbond's major shareholder reduction event through specific cases,then analyzes the motivation and impact of this behavior,and finally draws a conclusion.The article found that the flaws in the shareholding reduction system and the unreasonable shareholding structure provided opportunities for large shareholders to reduce their holdings.Since the family company maximized the interests of the family to carry out the reduction and cash out,the “clearance” reduction of the large shareholders of the family business caused the company 's operating conditions to change Poor,damage the interests of small and medium shareholders and reduce the market wealth effect.In order to avoid the negative impact of the reduction of holdings of large shareholders on the business development of the enterprise and the infringement of the rights and interests of small and medium shareholders,it is necessary to exert efforts from both the capital market and the enterprise itself.Specifically,first of all,it is necessary to improve the relevant laws and regulations and supervision mechanisms forlarge shareholders to reduce their holdings,increase the punishment mechanism for large shareholders to maliciously reduce their holdings,and maintain the order of the capital market and the rights and interests of small and medium shareholders;second,the company must improve its internal control system and optimize its shareholding structure In this way,large shareholders can contain each other and avoid controlling shareholders from using shareholding advantages and information advantages to maliciously reduce their holdings.