Tunneling And Corporate Governance In The Listed Companies

The stock market of our country is immature.Ineffective supervision and obsolete legislation cause the crisis of the development of the listed companies,most of which are retreated from the stock market.The separation of the control right and cash flow right induce the behavior of asset appropriation by block-holding shareholders.Related party transactions,which are the main channel of the asset appropriation by block-holding shareholders,are increasing largely recently.The problem we are facing is how to prevent the occurrence of the asset appropriation and how to protect the interest of the minority shareholders.We get the conclusion through empirical mode that:Related party transactions are negative correlation with the firm value;asset appropriation by block-holding shareholders may happen in such conditions:(1)The ownership of the corporation is concentrated.(2)The corporation has government background.(3)The corporation has lower proportion of managers holding;the excellent law environment,higher level of economic development and audit without non-clean opinion prevent the asset appropriation by block-holding shareholders;the rate of outsiders in the board of directors has no significant influence to the asset appropriation by block-holding shareholders.