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Research On The Path And Governace Of Big Shareholders’ Tunnelling In Chinese Listed Companies

Posted on:2015-04-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:B C HeFull Text:PDF
GTID:1109330467966385Subject:Business management
Abstract/Summary:PDF Full Text Request
It is definitely posed at the third plenary session of the18th CCP National Congress in November2013to promote the modernization of the nation’s governance system and governing abilities, which is the strongest note for the nation’s governance system. Compared with the multiple problems in the whole governance system, controlling shareholders’ tunnelling seems to be a butterfly in a forest which is in fact not as minor as considered by some but one that can bring butterfly effect in case of undergovernance,which will lead to the fluctuation and crisis of the entire capital market. Research has confirmed that the madness of control of controlling shareholders’tunnelling has been the major cause of the1997Asian financial crisis and the accumulation of risks in corporate governance has been the key factor which caused the break of the2008financial "tsunami". The chronic recession of China’s stock market in recent years must be attributed to the controlling shareholders’rampant tunnelling in some sense.The prevalent lack of governance in big shareholders’tunneling in the realistic world reflects the deficiencies in theoretical research, although it has caused extensive concern in the academia. A summary of the existing research has found that the focus has been on the harmful effects, the contributing factors, improvements on governance etc and the channel of tunnelling is far less concerned which is significant in opening the black box and deciphering the mystery of tunnelling so as to improve and upgrade the effiency and quality of governance in the field.Following the route of the tunnelling’s channel, this paper with governance of tunnelling as subject has focused on the motivation mechanism, the correlation rules of tunnelling’s channel and the governance model based on it. Innovation includes the following arguements:(1)This paper reveals the happening and evolvement of tunnelling. By introducing concept of principal-agent chain, the conceptual model of controlling shareholders’control by integrating the three dimensions of the general shareholders’meeting, board of directors’ meeting and the management.It’s concluded that the tunnelling has significant "status dependence" on configuration of control as a consequence of which the inner mechanism of tunnelling’s channel is deeply analyzed. It is concluded that the external spontaneous evolution can not realize the "pareto optimal"of governance in tunnelling by deductive and simulating analysis of ESS under five models which are built in this research, which extends the theoretical perspective and frame of research on process of external evolution of tunnelling.(2)This paper confirms the existence of correlation patterns in the tunnelling’s channel. With assistance of data mining technologies such as Apriori and based on mining of correlation rules of data of2367unconforming operations of listed company in the past20years and comes to the conclusion:for the prefence modle of tunnelling,"transfer profit and loss" comes the first, after it sequently "occupying assets","illegal guarantee" and "compound path", all of which can be put in one word that the more shading the tunneling is the more it is preferred by controlling shareholders. The exploration of tunnelling’s channel exhibits "20%-80%Law" which reveals that more than80%of tunnelling is accompanied by the occurrence of illegal disclosure and only20%of those could be revealed. The choice of timing sequence of tunnelling demonstrated strong "inertia" and the "channel dependence" which indicates the key of governance should be advancing the timing of control. The keypoint of prevention measures in tunnelling’s channel lies in "disclosured of unconforming information". Above new findings of this paper has provided substantial support for positive research of tunnelling’s channel.(3)This paper verifies the inter-relationships between ownership structure, external governance environment and tunnelling’s channel. Based on1088sample data of Shanghai and Shenzhen Securities Markets during the6fiscal years from2005to2010and with assistance of Logistics model, the statistical correlation relation between the seven dimensions including equity concentration, equity balance degree and "occupying assets","illegal guarantee","compound path" is verified. Findings reveal the nature ultimate of property rights only affects "occupying assets"."U" curve relationship exists in the relation of equity balance degree and "transfering profit and loss". The relationship between two rights separation and "illegal guarantee" is an "inverted U" curve relationship. Legal environment has a positive effect on the above three channels and quality of government, factor market environment have no significant effect on the "transfering profit and loss". Above conclusions enrich and extend the empirical research on tunnelling’s channel.(4)This paper puts forward the "the trinity" governance model by integrating innnovations of paradigm, channel and institution from the perspective of tunnelling’s channel. Paradigm innovation takes the lead which emphasizes the strengthing of system governance, data governance and culture governance; Channel innovation supports the model which focuses on the improvement of inner control system of tunnelling, pefecting of captical market system, maximizing of media surveilance, optimizing internal and external governance channels, strengthing the application of emerging technologies such as big data technology, and promoting coordinating governance. The innovation of instution gurantees the sustaining of the model which concerns the legislation of tunnelling including systems of regulations in order to secure long-term governance.
Keywords/Search Tags:Controlling shareholders, Tunnelling, Channel, Governance Model, Mining ofcorrelation rules
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