Research Of Investor Protection Under The Background Of Securities Regulatory Transition In China

Investor protection is an eternal topic in securities market. The development of national securities market is the history of investor protection. Social and public interests is the legislative aim of securities regulation legal system, also is the starting point and the ultimate aim of the securities supervision. Investor protection in trouble becomes a source of downturn in the capital market in our country. As China's securities market is an emerging market, the work of investor protection is still a long way to go. In the history of China's political and economic system, investor protection will always be the eternal theme of the securities market. Investor protection is a comprehensive engineering system, which is broad and difficult. It need make efforts from different aspects, actively participate and build better coordination mechanism to establish multilevel investor protection system.Under the background of the current securities regulation transition, this paper addresses the issue of investor protection research, focuses on the basic theory of investor protection and mechanism of infringement of the right of the interests of the investors, compares Chinese and foreign investor protection system, make an analysis of legal protection, supervision and information disclosure to reduce the effects of private benefits of control, and evaluate the investors return on investment. Main conclusions are as follows:First, the purposes and principles of investor protection of China and other countries, the legislative concept, specific protection mechanisms and measures such as converging, reveal the explicit regulatory orientation, the main regulatory institution of specialization, international regulatory cooperation, and many other common features. However, due to national different characteristics of the economic development, political system, legal and cultural traditions, investor protection system differs in the supervision mode, supervision object, supervision basis, the regulatory environment, and regulatory efficiency. All these provide useful lessons to perfect the system of investor protection in our country.Second, the legal protection of investors is conducive to reduce the private benefits of control. China's securities legislation level generally present perfect. With the development and perfection of China's legal system to protect investors system,private benefits of control shows a trend of reduce. But in different stages it appears some differences.Third, the regulatory protection to investors to reduce the private benefits of control has a certain influence. Although the fiscal expenditure of financial supervision increases year by year, the costs for the protection of investors is still relatively insufficient. It does not have the effect of reduce private benefits of control and restrain shareholders ' exploitation. The people's court of first instance verdict level has a statistically significant and negative effect to private benefits of control. It illustrates that the activities of law enforcement of court will warn the illegal behaviors and play a positive role to reduce private benefits of control.Fourth, the quality of information disclosure of listed companies has a significant effect to reduce private befits of control. Information disclosure is to eliminate the information asymmetry between investors and controlling shareholders, which is to alleviate their conflict and protect the rights investors.Fifth, the investment return of investors reflects the poor profit distribution status of listed companies and investors return on investment situation. On the whole, it reflects annually strong fluctuation, obviously different industry characteristics, and uneven regional development.The possible innovation and theoretical contribution are in several ways.The first is novel topic selection. Research related to investor protection at home and abroad is common, but combining with China's securities regulatory reform trend and experience, this paper make a rare and systemic research which puts investor protection into the research system of securities regulation system. It not only conforms to the orientation of China's securities regulatory transform, but also makes up the defect of the insufficient regulation of investor protection in our country, and has the strong practical research value.The second is analysis framework. This paper constructs the long-term mechanism of investor protection, based on the system of investor protection,regulatory protection, market protection, legal protection, self-discipline, self protection analysis framework, targeted for the mechanism analysis and empirical test,through to the investor protection in the construction of legal system, supervisionsystem operation and information disclosure mechanism, the returns of listed companies and investors own inspection analysis, provides the empirical basis for the investor protection system construction, but also to strengthen the securities regulation theory of explanatory power and applicability in the field of investor protection,regulation of investor protection in our country for the future research to provide certain theory support.The third is empirical research. Due to the particularity of the securities market and the nature of corporate governance, information asymmetry between investors and controlling shareholders and the interests of the target, serious principal-agent problems is the main source of the controlling shareholder exploitation. This paper is from three aspects of legal protection, supervision and information disclosure to introduce explanatory variables and use multiple regression model to analyse the effects. At the same time, the paper uses the factor analysis method to design the measurement framework of investor returns and make comparisons of each year,different industry and regions. It is urgent to optimize the dividend distribution mechanism of the listing companies and strengthen the investor self-protection.Overall, the empirical analysis provides a basis for the investor protection from the five aspects of the regulatory protection, market protection, legal protection,self-discipline and self-protection.