Empirical Study On Capital Occupying By Major Shareholders Of Listed Companies In China

The quality of listed companies is the cornerstone of the stock market and even the entire financial market's healthy development, And improving the quality of listed companies depends on the sound corporate governance structure. At present, there are many problems in China's governance of listed companies, One of the most importantphenomenon is that shareholders and other related parties occupy the funds of listed companies very long and the amount is 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 China's listed companies and the sustainable development capacity. Conducting of the major shareholders of the study, can not only improve the relevant theory, but also be beneficial to press the shareholders to repay the debt to the companies, and prevent new occurrence of the phenomenon, and protect the legitimate rights and interests of small shareholders. At the same time, listed companies can also improve the management structure, strengthen capital markets more attractive and vibrant, give full play to the capital market functions of optimizing the allocation of resources, and promote the healthy and stable China's capital market development.Using the domestic and foreign existing research results for reference, this paper takes the listed companies in China as the study object, and focus on the existence of the major shareholders of listed companies which are disclosed by the China Securities Regulatory Commission together with the special meaning of the major shareholders and the special background of our country . First of all, on the basis of statistically analyzing the present situations of the capital occupying companies by the major shareholders from the industry distribution, local distribution, scale distribution and so on , this paper analyzes from the overall size , the means , the patterns of behavior, and the harm of the capital occupying by major shareholders in our country's listed companies. Then ,on the basis of notice issued by the Shanghai and Shenzhen Stock Exchange, this paper chooses 105 listed companies which still exit funds occupation as a samples and analysis the factors of the capital occupying by the major shareholders through empirical studies. Finally ,on the basis of empirical analysis, the paper analyzes the problems of the capital occupying by the major shareholders from both history and system and finds its reasons. Then it gives the suggestions on how to prevent the major shareholders from occupying the funds of the companies from both internal and external governance perspective.This paper is divided into seven parts. In part one, the paper generally describes the topic of the article and its definition, besides it introduces research approaches, structure and content, on the basis of the other people's research achievements and literatures. In part two, the paper introduces some theories about corporate governance, and this can provide a rationale for the paper. In part three, it statistically analyzes the present situations of the capital occupying companies by major shareholders and analyzes from the overall size , the means , the patterns of behavior, and the harm of the capital occupying by major shareholders in our country's listed companies. In part four, the paper focus on the capital occupying companies by the major shareholders, with the help of companies'public data and other relevant data, and after variable screening ,the paper constructs the logit models by applying logistic regression method. In this part, it draws the following conclusion s: Fist, it proves that when the first major shareholders have the proportion of shareholding below 50 percent, the greater the proportion of shareholding, the higher the occupancy rate funds. Secondly, in controlling the impact of other factors, between the capital occupying by the major shareholders of listed companies and the largest proportion of shareholders holding has the first positive after the reverse of the non-linear relationship. In part five, according to the empirical analysis of Chapter IV , this paper systematically analyzes the problems of the capital occupying by the major shareholders from both history and system and finds its reasons. In part six, on the basis of the measures about how to pay the funds to the companies, the paper gives the suggestions on how to prevent the major shareholders from occupying the funds of the companies from both internal and external governance perspective. In part seven, it is the concluding remark. The paper points out the limitations of existing and future efforts.