A Study On Controlling Shareholders Of The List Company Expropriation Minority Shareholders' Interest In China

It is highly concentrated ownership in Chinese listed companies, and some controllingshareholders are in the hands of the company's control. Those controlling shareholders withthe control right, expropriate the interests of minority shareholders. There are many evidencesto prove that the controlling shareholders do expropriations. The most common and directmean is to occupy funds of the list companies, including directly occupying, borrowingcontract, connected transactions and asking guarantee from listed company. Furthermore, theyalso use means of connected transaction to transfer resources and insider dealing. In addition,they prefer to equity financing and glossing over performance to help expropriating behaviors.They have done great harm to the development of china's capital market.The results of the theoretical and empirical studies on controlling shareholders expropriatethe interests of minority shareholders show that: Firstly, Private Benefits of Control is 9.76％;Secondly, the higher the ROE and financial leverage, the more Private Benefits of Control; thelarger outstanding share, the less Private Benefits of Control; and it is uncertainty for thescale's impact on Private Benefits of Control.The last is suggestions, including improving the governance of listed company structure,strengthening supervision and strengthening the legal protection on minority shareholders, andso on. It is in order to enhance the investment, and promote the healthy development of thesecurities market. By protecting the rights of minority shareholders...