Listed Companies And Interests Of Minority Shareholders Imbalances

With the development of years, there are many achievements in Chinese securities market in many aspects such as scale, law and supervision. However, owing to the influence of misunderstanding ideas, Chinese securities market is always requested to serve the innovation of state-run enterprises for many years. Nowadays still some people assume that listed companies are the basis of securities market. But, in fact the real basis is many individual investors who offer much capital for securities market. Without individual investors, securities market will lose the function of financing. Therefore the protection of individual investors' benefit is of great importance to the development of securities market.But there exist a series of affairs, such as Qiongminyuan, ST houwang, Yinguangxia, which reveals the offence to individual investors' benefit. If the unbalanced allotment between listed companies and individual investors cannot be eliminated, Chinese securities market will make little progress. So the aim of this dissertation is to seek solutions to eliminate the unbalanced allotment of benefit between listed companies and individual investors.There are many factors historical and systematic that bring about the unbalanced allotment of benefit between listed companies and individual investors. The dissertation mainly analyzes normal and special factors from the angle of framework of shares and management system with theory of contract or principal-agent, and puts forward some solutions correspondingly. As for the structure, the dissertation is divided into three segments including:The first section mainly discusses the aim of the dissertation according to the story of Yinguangxia's deceiving investors with the whole bag of tricks. In fact, so many stories same as Yinguangxia in Chinese securities market show that individual investors' benefit is still offend by listed companies, which must be resolved as soon as possible.The second section is the most important part of the dissertation, in which mainly analyzed the factors bringing on the unbalanced allotment of benefit between listed companies and individual investors. Firstly, author defines several important or divergent terms as listed company, individual investor, owner's wealth, unbalanced allotment of benefit. Secondly author introduces three basic theories cited in the dissertation generally. Finally author analyses why the benefit between listed companies and individual investors don't balance. With the theory of contract or principal-agent explaining, the relation between listed companies and individual investors is the same as principal-agent model. Because of the different benefit and asymmetric information between them, listed companies usually offend individual's benefit. In other words, there exist many affairs of moral hazard or adverse selection between listed companies and individual investors. Moreover, on account of special economy background in China, listed companies' framework of shares is abnormal which brings about more balanceable benefit between listed companies and individual investors.The third section mainly discusses the possible solutions for the unbalanced allotment of benefit between listed companies and individual investors. On the basis of the second segment, author finds solutions from the angle of the framework of shares and management system. From aspect of framework of shares, author suggests that it is necessary for the shareholders meeting to reduce the proportion of government's shares, todevelop institutional investors, to settle the whole liquidity of shares and to establish system of protecting individual investors. As far as management system is concerned, author thinks that it is important to establish system of incentives and information announce.The unbalanced allotment of benefit between listed companies and individual investors, which is discussed deeply and comprehensively by many scholars, exits for long time in Chinese securities market. However, the succes...