Research On The Question Caused By Controlling Shareholders' Plunder To Minority Shareholders' Interest In Private Placement

Along with"the issuance of securities of listed companies management approach" was issued on May 7,2006, private placement entered China capital market as a new equity financing mode. From 2006 to December 31,2009, private placement raised a total of 81,000,242 million for listed company, which accounts for 79.83% of the equity financing total in capital market. Private placement has become the most important choice of listed company for equity financing.With the rapid growth of the scale and number of private placement, controlling shareholders'tunneling in private placement has become a serious problem. The controlling shareholders'tunneling not only hurts the minority shareholder and listed company on interests, but also China capital market on stability. The controlling shareholders'tunneling has become the focus of new theory study about private placement.In normative research, the paper analyzes the infringement to minority shareholder caused by controlling shareholders'plunder from the perspective of equity dilution; And the paper also calculates the shareholders'wealth amount in change before and after private placement; The loss in minority shareholders'wealth is also calculated during the private placement.In empirical research, the paper selects 176 listed companies from Shanghai Stock Market and Shenzhen Stock Market as samples that issued private placement in the period of January 1,2007 to May 31,2010, and then study the insider trading existing in private placement in China capital market. And the paper also selects 32 private placements that completed during the three years of 2006 to 2008 and by controlling shareholders in the way of asset subscription, and then study the quality of asset that controlling shareholders injected from the perspective of company performance.Finally, the conclusion of this paper is that the asset's quality that put into by controlling shareholders is better. The insider trading existing in China capital market's private placement is very serious.