The Relations between Annual Report Tone Management and Major Shareholder Reduction of Listed Company—A Case Study Based on Ourpalm Company
Liang Chang, Yuzheng Zheng, Na Tan
Available Online August 2019.
- https://doi.org/10.2991/iceiem-19.2019.46How to use a DOI?
- tone management, major shareholder reduction, text information, market timing
- Case studies on listed companies influencing their stock price by manipulating the tone of sentiment in information disclosure thus to reduce the holdings are rarely seen in existing literature. Based on the perspective of tone management, this paper take OURPALM Co., Ltd. as a case study, which is a listed company, finding that the external competitive pressure faced by game industry and the huge goodwill risk accumulated by mergers make it possible for the majority shareholders to reduce the holdings through information asymmetry. The major shareholder made a tone of manipulation through the more optimistic annual report information and more bright earnings performance report. After raising the stock price, the major shareholders took the opportunity to reduce their holdings. The supervision loopholes are the most important reasons for the reduction of the holdings of internal people through tone manipulation. Studies have shown that under the condition of information asymmetry, the company has a strong motivation to manipulate the market timing through active information disclosure to satisfy its own interests. Regulators must take a multi-pronged approach in terms of information disclosure and regulations of reduction to achieve better protection of small and medium investors and a healthy development of the capital market.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Liang Chang AU - Yuzheng Zheng AU - Na Tan PY - 2019/08 DA - 2019/08 TI - The Relations between Annual Report Tone Management and Major Shareholder Reduction of Listed Company—A Case Study Based on Ourpalm Company BT - 2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019) PB - Atlantis Press SP - 183 EP - 188 SN - 2352-5398 UR - https://doi.org/10.2991/iceiem-19.2019.46 DO - https://doi.org/10.2991/iceiem-19.2019.46 ID - Chang2019/08 ER -