Research On Financial Targets Of Majority Shareholders Capital Occupying In Listed Companies

In China, the ratio of shares concentration is very high. When the legal system about the protection for the interest of minority shareholders is imperfect, the majority shareholders usually occupy founds of the listed companies using their power of control, and the amount of occupying capital is very huge, which is listed on the fatal risk of corporate governance, capital occupying by major shareholders has been a serious threat to the survival of our country's listed companies and the sustainable development capacity of listed companies. Majority shareholders of listed companies capital occupying not only affect the management of listed companies and impair the interests of minority shareholders, but also impede the healthy development of the securities market.Firstly, this paper introduces the significance of the topic selection and the background, makes a summary on the achievements about the majority shareholders of listed companies occupy capital from the domestic and overseas, and studied on the patterns of behavior, the harm of the capital occupying by major shareholders in our country's listed companies, and analyzes on the financial targets from the three aspects of earning ability,repayment capability and operating cash flow per share. Then it statistically analyzes the present situations of the capital occupying companies by the major shareholders and related Financial Targets.The paper use the data of listed company of A-share announced by Shanghai and Shenzhen Stock Exchange on June30, 2006, empirical analyzed the major shareholders'capital occupying. We draw the following conclusion through statistical method examination: the rate of capital occupying and the financial targets of return on asserts is negatively correlated; the rate of capital occupying and the financial targets of current ratio is negatively correlated; so is the relation between the operating cash flow per share and the rate of capital occupying. Through empirical research methods, the study draws a conclusion that the majority shareholders of listed companies capital occupying has negative impact to profit ability,repayment capability and operating cash flow. The paper describes the case of listed company of Wuliangye, which has been tunneled by majority shareholders. The specific causes and the patterns of behavior of capital occupying are analyzed, through the analysis of financial indicators validated empirical conclusions of the front Part.Finally on the basis of summing up the paper, it gives the suggestions on how to prevent the major shareholders from occupying the capital of the listed companies, Including improving the governance of listed company's structure,strengthening supervision and strengthening the legal protection on minority shareholders, perfecting and improving the system of independent directors and so on.