Study On Protecting The Interests Of Minority Shareholders Of Listed Companies

With the Chinese capital market gradually entering an era of full circulation,protecting the interests of small and medium-sized shareholders have been attractingmore attentions. However, even with the accomplishment of the reform of capitalmarket, violations of the interests of small and medium-sized shareholders stillhappens quite often, which indicates that there still be considerable defects of smalland medium shareholders’ interests protection system in Chinese listed companies. Asthe basis of corporate governance structure, capital structure has important influenceto the company’s organizational structure and management behaviors. This articledescribes an effective mechanism of protecting small and medium-sized shareholdersof listed companies in terms of the generalized capital structure, ownership structureand debt structure.Firstly, this thesis reviews the relevant research results of the protection ofminority shareholders interests in China and other countries. And based on this, itdepicts theories about investor protection, and further discusses the problems of listedcompanies in our country on small and medium-sized shareholders interestsprotection after the reform of non-tradable shares market: unreasonable equitystructure, unreasonable debt structure, etc. An objective evaluation of Chinese smalland medium-sized shareholders’ interests protection is the basis of quantitativeresearch of its economic consequences, this article concludes that small andmedium-sized shareholders protection cover six aspects: information disclosure,shareholder returns, the value of the company, the potential occupation, internalgovernance, and corporate integrity, and uses the variation coefficient method tocalculate the weights of indicators, and then get the index of protecting minorityshareholders’ interests in the weighted average method.Following this is the correlation analysis, analyzing the relationship and thecorrelation between the capital structure and the protection of small andmedium-sized shareholders with the data from2010to2012and finding the affectionof the ownership concentration, equity balance degree, nature of the biggest shareholders, the proportion of shareholding institutional investor and asset-liabilityratio to the protection.Finally, this thesis concludes and proposes suggestions based on the conclusionin correlation analysis. In order to build a reasonable and effective protection systemof small and medium-sized shareholders’ interests, suggestions are made in this thesisfrom the aspects of optimizing configuration of institution of investors, strengtheningdebt financing constraints, developing effectiveness of independent directors in listedcompanies, strengthening the implementation of information disclosure of listedcompanies and improving relevant laws and regulations, etc.