Research Of Tunneling And Information Disclosure

The end of last century, with the transformation of China’s economy system, capital market has gradually become an important force in market and optimizing the allocation of resources. Today, China’s capital market has reached the critical period of high-speed development. However, due to the late start of Chinese capital market, listed companies still have many problems, especially large shareholders through related party transactions, capital occupying, stock price manipulation and other means emptied of listed companies. Tunneling not only damage the legitimate rights and interests of minority shareholders, but also affect the normal production and operation of the listed company, seriously disrupted the market order. How to avoid the ultimate controller emptied listed companies, ensure the normal development of listed companies is the big problem urgently to be solved in the capital market.Information disclosure have a major impact on governance of listed companies. Internally, the quality of information disclosure can response management level of management. Externally, improve the quality of information disclosure can improve the efficiency of financing, to protect minority shareholders, and promote the healthy development of capital market. In recent years, the level of information disclosure in listed companies in China has improved, but there are many problems cannot be ignored, whether listed companies, accounting firms or regulators are also has the very big improvement space. High quality of information disclosure can help investors to identify tunneling and prevent tunneling of big shareholders. So this paper in the perspective of information disclosure research tunneling of listed companies.With the ginseng industry policy beneficial given by the Jilin Government, Zixin Pharmaceutical Co., made substantial growth in both revenues and profits by ginseng trade in2010, pushing the share price steadily rose. However, in August 2011, it was reported that the Zixin Pharmaceutical Co., was involved in manipulating profits by non-fair related party transactions using shell companies with the purpose of tunneling the company by controlling shareholders. And it was named "The Second Yinguangxia". With the steady development of China’s capital market, improvement of information disclosure system and strict regulation, the occurrence of Zixin Pharmaceutical tunneling case is thought-provoking.With the combination of normative research and case analysis research method, this paper analyze the tunneling of listed companies and information disclosure in our country.This Paper is divided into six chapters. The first chapter is an introduction part of research background, research significance, research methods and so on. The second chapter is the review of literature which summary the existing research results of tunneling, related party transactions and information disclosure. The third chapter is the analysis of basic theory, mainly introduced the basic theory of tunneling and information disclosure. The fourth chapter is the conclusion of listed companies tunneling motive, means, Current situation and deficiencies of the information disclosure. The fifth part is to introduce and analyze Zixin Pharmaceutical Co. case combined with theoretical analysis above. Finally the sixth part is the advice about how to prevent the tunneling of listed company.