The Study On The Motivation And Economic Consequences Caused By The Major Shareholders’ Stock Shares Reduction Of Rifa Precision Machine Tool Co,Ltd

In recent years,the scale of the reduction of large shareholders has been expanding,and the illegal reduction of cash and frequent reduction of holdings have gradually increased,which has damaged the interests of many small shareholders.In order to further regulate the behavior of major shareholders’ reducing holdings and prevent them from further infringing on the rights and interests of minority shareholders,since 2015,the CSRC and relevant departments have introduced a series of relevant regulations regulating major shareholders’ reducing holdings,but the problem of reducing holdings still exists and has not been effectively solved.Therefore,in order to further protect the interests of minority shareholders and regulate the sell down behavior of major shareholders,it is necessary to have a more in-depth understanding of why major shareholders continue and frequently sell down their holdings and what economic consequences it has produced.In this paper,the major shareholders of Rifa-Seiji continuous persistence event is taken as the case study object,using the case study method and other methods,based on the principal-agent theory,information asymmetry theory and other relevant theories,in-depth analysis of the major shareholders of Rif A-Seiji continuous reduction of the motivation,the market reaction and the specific impact on the company and minority shareholders.The main conclusions are as follows: First,the motivation of selling shares of Rifa-Seiji is to avoid risks,relieve capital pressure,and obtain high cash returns.Its main means mainly have two,one is to manipulate information disclosure to cooperate with the reduction of holdings,the other is to discount the transfer of bulk shares;Second,the reduction of major shareholders’ holdings of Rif A-Seiji in the short term mainly brings negative market translation or reduced earnings.If the reduction of major shareholders’ holdings is accompanied by a sharp rise in market conditions,a sudden increase in performance or government policy support,the negative effects brought by the reduction of major shareholders’ holdings will be reduced,and even lead to the growth of earnings.If major shareholders sell down accompanied by other bad news,the negative effect will be further expanded;Thirdly,the reduction of major shareholders’ holdings is not good for the long-term operation of the company.As the continuous reduction of major shareholders’ holdings will bring negative effects on long-term returns,making the long-term returns basically negative,which will cause the majority of minority shareholders to suffer losses.Therefore,through the research,it is found that the continuous reduction of major shareholders has a negative impact on the long-term development of the company,and will directly cause the small and medium shareholders to suffer economic losses.In order to further maintain market stability and protect the rights and interests of minority shareholders,the market regulatory authorities still need to further strengthen the major shareholders’ adherence to information disclosure;Companies themselves should also further strengthen their own governance;Small and medium-sized investors may improve their ability to analyze and obtain information professionally,so as to protect their own rights and interests.