The Impact Of Major Shareholder Reduction On Corporate Value Under The New Regulatory Policy

With the smooth completion of the reform of non-tradable shares,the stock with different rights problems gradually improved,and the capital market has entered the era of full circulation.At the same time,more and more large shareholders seek profits through reducing their holdings.However,due to the widespread asymmetry of information in the capital market,the reduction of holdings by large shareholders often causes more small and medium-sized investors to follow suit,leading to market fluctuations and panic,and even irrational market decline,which not only affects the personal interests of small and medium-sized investors,It also has a certain impact on the enterprise value.The CSRC has also issued relevant policies to supervise and restrict the reduction of major shareholders,so the research on the reduction of major shareholders can not be ignored.This paper makes an in-depth analysis of the impact of large shareholders’ reduction on enterprise value,which is of great significance to protect the interests of small and medium shareholders and maintain the healthy and stable development of the capital market.Based on the empirical data of Shanghai and Shenzhen A-share listed companies from2013 to 2020,this paper uses empirical research and literature research methods to conduct theoretical analysis and empirical research on the impact of major shareholders’ reduction behavior and enterprise value.Firstly,based on the explanation of information asymmetry theory,signal transmission theory and principal-agent theory,this paper systematically combs and summarizes the relevant literature in this field,briefly analyzes the current situation of major shareholders’ reduction of Listed Companies in China,puts forward assumptions and designs models.The empirical analysis first studies the impact of large shareholders’ reduction on enterprise value,and then subdivides the reduction of large shareholders’ holdings into the identity of reducing shareholders and the nature of reducing enterprises,and carries out grouping regression test;Further investigate the regulatory role of the new regulation on the reduction of major shareholders and the enterprise value.Finally,the methods of replacing the explained variables,small sample regression and lagging one-stage explanatory variables are used to test the robustness.Through the research,there is a significant negative correlation between the reduction behavior of major shareholders and enterprise value.As can be seen from the different identities of the divesters,when the major shareholders are managers of the enterprise and the divestment occurs,the enterprise value is negatively affected,while when the major shareholders are nonmanagers and the divestment occurs,the enterprise value is not significantly affected.From the perspective of ownership nature,the reduction of non-state-owned major shareholders has a negative impact on corporate value,while the reduction of state-owned major shareholders has no significant impact on corporate value.The research on the regulation effect of the new regulatory policy shows that the new regulatory policy plays a significant role in restraining the influence of the reduction of large shareholders on the enterprise value,which confirms the effectiveness of the regulatory policy.According to the above research results,countermeasures and suggestions are put forward to regulate the reduction behavior of major shareholders and protect the interests of small and medium investors.