Based On *ST Yuf's Analysis And Prevention Research On The Tunneling Behavior Of Major Shareholders

In Chinese public companies,the phenomenon of concentration of equity is common.After some major shareholders have control of public companies,they have carried out hollowing out of public companies.At present,the laws and regulations on tunneling of the country are not perfect,and there are problems such as information asymmetry caused by improper internal governance of some enterprises.It is not uncommon for major shareholders to hollow out public companies by means of capital occupation,illegal guarantees,and connected transactions.And the bad tunneling behavior will often bring huge negative effects.Therefore,it is a long-term topic that is worthy of attention and discussion on how to prevent and manage the tunneling of the company by major shareholders using equity and control rights,reduce the economic losses of public companies and minority shareholders,thereby ensuring the stable development of society.This article takes "*ST Youfu" as the research object,and use of the references,case survey and normative analysis methods.It is based on the theory of principal-agent theory,control right income theory,information asymmetry theory,and evolutionary game theory.Starting with the case,the article analyzes the motivation,means,and influence of the major shareholders’ tunneling behaviors,and puts forward precautions and suggestions.First,this article discusses the development of *ST Youfu’s company and successive major shareholders,and analyzes the motivation of tunneling.It was found that the pursuit of interests by major shareholders lacked awe of relevant laws and regulations,coupled with the company’s internal control and governance defects,and weak external regulatory penalties.By reviewing the *ST Youfu tunneling event,it was found that its major shareholders mainly achieved profit by raising the stock price after leveraged acquisitions,and delivering benefits through illegal guarantees,connected transactions,connected relationships,and equity pledge.Through the impact analysis,it was found that the tunneling event caused the company to face a "delisting warning”,the stock price fell sharply,the operating conditions were frustrated,and the interests of minority shareholders were damaged.There is also a negative impact on the company’s related creditors and the financial operations of financial institutions.Finally,aiming at these methods and their impacts and summarizing the characteristics of the case,this paper proposes that the company should strengthen the governance strength and ensure information disclosure,and external parties must strengthen the supervision andpunish the violation of laws and regulations together.It is hoped that all listed companies and other practitioners will learn from them and improve their prevention of tunneling by major shareholders.