Research On The Reduction Behavior And Consequences Of Major Shareholders Of 37 Interactive Entertainment

The comprehensive start of the national share-trading reform has prompted China’s securities market to gradually enter the period of full circulation of the stock market.The consequence of many restricted shares being lifted is that it is more difficult to manage the situation of major shareholders and executives reducing their holdings and cashing out.Some major shareholders of listed companies intend to push up stock prices,reduce their holdings at high levels and obtain excess returns.The consequence of this behavior is that investors’ investment determination is weakened,and the country’s regulatory environment is also damaged.This kind of behavior has a very bad impact on the effective competition in the capital market.This paper selects the major shareholders of listed companies on the Shanghai Stock Exchange as the main research object,through in-depth research on the speculative arbitrage activities of major shareholders in the reduction of holdings and analyzes the 60 times of reductions in 37 Interactive Entertainment,and adopts the proxy-agent method.Theories,such as internal information superiority theory and tunnel effect,have confirmed that the large shareholders have internal information superiority,which is beneficial for them to obtain excess profits,but infringes the rights and interests of small and medium investors.By analyzing shareholders’ shareholding reduction behavior in combination with the "New Regulations on Share Reduction",we can not only directly see the violations of major shareholders when reducing their holdings,but also have a clearer understanding of what the "New Regulations on Shareholding Reduction" are.It is concluded that the reduction action of the major shareholders of 37 Interactive Entertainment takes advantage of the positive or excess profits generated by a lot of good news,and the company already could choose the time to reduce its holdings,so it can choose to realize the reduction at an appropriate time.hold behavior.This means that the major shareholder is suspected of using wrong information to push up the stock price,and the company itself has already achieved a high reduction,thus infringing on the rights and interests of other investors.The innovation of this paper is that,referring to the content promulgated in the "New Regulations on Share Reduction",it interprets shareholders’ share reduction behavior,provides new ideas for investigating major shareholders’ breach of contract and illegal share reduction behavior,and puts forward innovative suggestions by analyzing existing defects.In addition to analyzing from the traditional financial perspective,it also analyzes the impact of changes in the company’s major shareholders’ shareholding ratio and management changes on the company from the perspective of corporate governance.