Research On The Economic Consequences Of The Interest Encroachment Behavior Of ST Haoyuan Major Shareholders

In recent years,non operational fund occupation,related party transactions,and illegal guarantees have become the main means of major shareholder interest infringement.From Chundu Group and Lenguang Industry many years ago,to recent companies such as East Ocean and Zhongzhu,they have been severely affected by the encroachment of major shareholders’ interests,even resulting in delisting.Due to the concealment,long-term nature,and irreversibility of the encroachment of major shareholders’ interests,once discovered,the losses caused are difficult to recover.Therefore,how to prevent the occurrence of these behaviors and protect the rights and interests of small and medium-sized shareholders has become an urgent and important issue that needs to be solved.This paper selects ST Haoyuan,who has been warned by the CSRC twice in a row,as a classic case for research.Based on the theory of privatization of control,principal-agent theory,and information asymmetry theory,this paper uses the event study method,quantitative and qualitative analysis methods to uncover the mystery of ST Haoyuan being warned of risks due to the encroachment of major shareholders.Firstly,based on reading and commenting on the research on the economic consequences of major shareholder encroachment at home and abroad,this paper systematically sorts out the timeline of major shareholder encroachment behavior by elaborating on the basic situation and case background of ST Haoyuan Enterprise.Secondly,based on the relevant information already disclosed by ST Haoyuan,in-depth exploration and analysis were conducted on the behavior and performance of major shareholder interests encroachment.The motivation,means,and causes of major shareholder interest encroachment behavior were analyzed using literature research and qualitative analysis methods.Thirdly,from three aspects of enterprises,small and medium-sized shareholders and capital market,this paper analyzes the economic consequences of large shareholders’ encroachment on enterprises.When measuring the economic consequences of large shareholders’ encroachment on interests,it uses financial indicators,EVA analysis,event study and other methods.Finally,by analyzing the above issues and combining their industry and company characteristics,governance strategies were proposed for the enterprise from both internal and external perspectives.The research results of this article not only provide a theoretical basis for suppressing and preventing ST Haoyuan’s major shareholder interest infringement behavior,but also provide new case materials for other scholars to study the economic consequences of major shareholder interest infringement behavior,and provide reference and reference for other listed companies to prevent major shareholder interest infringement.