Research On The Relation Between Bank Supervision And Controlling Shareholder's Embezzlement Of Listed Company's Funds

Through combining the domestic and foreign researching, we find that highly concentration of equity, imperfect market, unsound laws and other reasons led to the serious embezzlement of funds which negatively affects the listed company's financial performance, financial market and the efficiency of resource allocation. Based on the serious economic consequences caused by controlling shareholder's of embezzlement of funds, the scholars have researched how to inhibit the controlling shareholder's embezzlement of funds from the perspective of internal governance and external governance. On the perspective of external they mainly researched the inhibition of social audit, market environment and legal environment to controlling shareholder's of embezzlement of funds while neglected to research on the affect of big large creditors (bank) to controlling shareholder's of embezzlement of funds. This paper considers the bank supervision as an important part of the governance mechanisms, and through the analysis of the relevant theories, derives the inhibition mechanism of bank supervision to the controlling shareholder's embezzlement of funds which consider that bank supervision can improve the transparency of information which can reduce the degree of the controlling shareholder's embezzlement of funds.On the basis of the previous researching of the influencing factors of the controlling shareholder's embezzlement of funds, this paper control the other variables which affect the degree of the controlling shareholder's embezzlement of funds , take the rate of bank loan, loan period, the rate of bank deposit and the proportion of secured loans as the substitution variables to measure the bank supervision, and use the empirical methods to inspect the affect of bank supervision to the controlling shareholder's embezzlement of funds. Through the empirical research, we find that: the rate of bank loan and the rate of bank deposit are significant negative correlative to the controlling shareholder's embezzlement of funds; the proportion of secured loans is significant positive correlative to the controlling shareholder's embezzlement of funds; loan period is non-significant negative correlative to the controlling shareholder's embezzlement of funds. These show that in our country bank supervision has the effect to inhibit the controlling shareholder's embezzlement of funds to some extend.This paper adopts the methods that combine normative research and empirical research. Compared with the previous research, the possible innovation is that, facing with the problem of controlling shareholder's embezzlement of listed company's funds, this paper uses some proxy variables which measure the bank supervision to research the affect of the bank supervision to the controlling shareholder's embezzlement of funds.