The Usufruct Protection Index Construction Of Small And Medium-sized Investors Of The Listed Companies In China

All countries attach great importance to the protection of investors. In order to strengthen the investor protection, Every country resort to the legal regulation.But in terms of the current situation, There are many financial scandal about the violation of small and medium-sized investors, the investor protection is still not in an optimistic condition.Compared with developed countries, our country’s ownership structure is relative intensive.In China’s capital market, it shows up as the violence of major shareholders against minority shareholders. Although our country has strengthen the legal protection of small and medium-sized investors, the legal mechanism is not perfect and the phenomenon of major shareholders encroach listed-companies’ benefits is still common.This paper argues that the degree of major shareholders and minority shareholders’ interest production may be measured by constructing the accounting index system. "Company law" specify: the shareholders of a company shall be entitled to enjoy the capital proceeds, participate in making important decisions and selecting its management rights, etc. Due to small and medium-sized investors are more concerned about their income, this paper aims from the perspective of protecting minority investors’ usufruct to build the usufruct protection index of small and medium-sized investors.Firstly, On the basis of previous scholars study, according to the relevant theoretical basis, we think small and medium-sized shareholder’s usufruct is mainly reflected in three areas:Dividend distribution dynamics directly affects small and medium-sized investors’ gains in hand.The degree of affiliate transaction affects the listed company’s normal profits.The level of funds occupation affects the listed company’s normal operation ability. After this we use cash dividends, associated trade, captical occupition as index system, and the three dependent variable to measure standard values.This paper chooses the listed companies’ data in 2011-2013 to establish the regression model, on the basis of relevant assumptions to study their relationship with the ownership structure(equity concentration, separating degree, equity ownership balance, equity properties), we can verify the selected three aspects really belong to the occupation of the big shareholders. Then,we use a certain score method to get the index formula. At last, this paper gets the calculation formula of the usufruct protection index of small and medium-sized investors by means of incorporating the three factors. According to the formula, using the 837 sample company data in the year 2013 to build the small and medium-sized investors’ usufruct protection index. At the same time, separate the industry to analyze the 837 listed companies protection status, we found that the small and medium-sized investors’ usufruct protection index of the mining industry is low; The highest is the leasing and business services industry.Minority shareholders is in the disadvantage of information compared to the big shareholders, so the ability to access to information and supervise the controlling shareholder is limited, the construction of the small and medium-sized investors’ usufruct protection index is based on the background of the capital market information asymmetry, it can provide more abundant information for small and medium investors and securities regulators, strengthen the ability of small and medium-sized investors’ discrimination ability and the regulatory’s supervision ability. Building the usufruct protection index can promote the securities market to go to compliance and legalization in a certain extent. But the standard market behavior is a long-term process, except by building protection usufruct protection index, we should continue to optimize equity structure, perfect the relevant legal system, strengthen market supervision and restrain the controlling shareholders’ encroach behavior, safeguard the legitimate rights and interests of the of small and medium-sized investors and promote the healthy development of securities market.