Research Protection Of Minority Investors Based On Ownership Concentration Of The Private Listed Companies

The private economy has gradually become an important force in the stock market. The rapiddevelopment of private listed companies, the impact of the development of the national economy isgrowing. They have played an increasingly important role in solid capital markets and promote thegrowth of the capital market. However, in the current context of the system, securities manipulation,insider trading, stock market speculation is rampant, the securities legal system relief mechanismmissed, these phenomena are caused by the interests of small investors can not be guaranteedCompared with the state-owned nature of listed companies, the special ownership structure of theprivate listed companies caused the major shareholder have the more motivation to infringe otherminority investors, so seriously damage the company efficiency, then the company showed moreserious agency problems.This paper to explore the minority investor protection issues in ownership concentration ofprivate listed companies, and hope to seek ways to resolve the issue of minority investors’ interestsharm in theoretical and empirical analysis. The main contents are four sections: first, based on thestudy of relevant literature, analyse and elaborate the concepts of ownership concentration and thefeature of minority investors protection in private companies, research minority investors protectionof the private listed companies based on agency theory, tunneling theory and separation ofownership theory; second research the current situation of minority investors protection in privatecompanies based on ownership concentration, discovery the major shareholder infringe the interestsof minority investors by the tunnel, the dividend policy as well as the cost of operating, at the sametime analyse the reasons; third by private listed companies in Shanghai A shares for the sampleusing the multiple regression model for empirical analysis of the relationship between ownershipconcentration and minority investor protection as well as ownership restriction and minorityinvestor protection. The results can be seen, the ownership concentration and minority investorprotection into a quadratic function, specifically, the approximate parabola opening down, apositive correlation between ownership restriction and the protection of minority investors, explainthere is a best ownership concentration to improve the level of minority investors protection inprivate listed companies; finally based on theoretical analysis and empirical analysis, for the reasons of major shareholder infringe the interests of minority investors, to propose solutions tostrengthen the protection of minority investors in prevention and governance of tunneling,separation of ownership, minority investors themselves and information disclosure.