The Analysis Of Collusion Between The Controlling Shareholders And The Creditors

Most of the existing literature at home and abroad to research the occupation of the controlling shareholder of the interests of small shareholders, some scholars started to pay attention to the controlling shareholder of the encroachment on the interests of creditors, debt covenants signed by the controlling shareholders and creditors is an incomplete contract, creditors, controlling shareholder information disadvantage, through contract terms to eliminate all the risks, which the imperfect terms of the debt contract has been signed to the controlling shareholder to the detriment of the interests of creditors to provide the machine can take advantage of, which most scholars of creditors and minority shareholders as outside investors, the same as the object of interests against In fact, the creditor will sometimes controlling shareholder of the interests of minority shareholders occupation of laissez-faire attitude, even with the controlling shareholder of conspiracy to occupation of the small and medium-sized interests of the shareholders, thereby affecting the enterprise value. Starting from the conspiracy theory, the research interests of the controlling shareholder of occupation from the perspective of controlling shareholder and creditor collusion, you can explore the controlling shareholder of the new interests of the occupation, occupation for the benefit of the effective constraint of the controlling shareholder, to effectively protect the interests of minority shareholders, thus improve the corporate governance mechanism, to provide a new perspective.The paper first defines the meaning of conspiracy, conspiracy generation mechanism from the theoretical description of the conspiracy is an agent and supervisor of the natural alliance, not necessarily harmful to the organization, to regulate agent when the principal is not able to use the principle of complete contract all behavior, allow the existence of collusion may be wise and desirable. Then a theoretical model analysis shows that controlling shareholders and creditors, there may be collusion, and collusion between the two organizations is harmful. Then, according to the empirical test of the financial data of listed companies in China in2007-2010controlling shareholders and creditors of collusion on the enterprise value, the results show that our controlling shareholder and creditor collusion extent the greater enterprise value is lower. On this basis, combing through the literature, further empirical test method confirmed the conspiracy of which factors controlling shareholders and creditors, concluded that:(1) a high degree of government intervention in the region controlling shareholders and creditors more easily conspire.(2) the degree of investor protection and weak areas of the controlling shareholder with creditors easier to conspire. Finally, based on proven impact factors, combined with China’s actual conditions, inhibition of the recommendations of the controlling shareholder and creditor collusion.