Proceedings of the 2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019)

The Relations between Annual Report Tone Management and Major Shareholder Reduction of Listed Company—A Case Study Based on Ourpalm Company

Authors
Liang Chang, Yuzheng Zheng, Na Tan
Corresponding Author
Na Tan
Available Online August 2019.
DOI
https://doi.org/10.2991/iceiem-19.2019.46How to use a DOI?
Keywords
tone management, major shareholder reduction, text information, market timing
Abstract
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.
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This is an open access article distributed under the CC BY-NC license.

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Proceedings
2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
August 2019
ISBN
978-94-6252-779-9
ISSN
2352-5398
DOI
https://doi.org/10.2991/iceiem-19.2019.46How to use a DOI?
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  -