A Study On The Relationship Between Minority Investors Protection And Equity Structure

Equity structure is in a fundamental position in the corporate governancestructure, the reasonable ownership structure not only can promote the perfection ofcorporate governance structure, but also can protect the interests of minority investors.Minority investors are the main source of market liquidity, are considered to becrucial for the survival and development of listed companies. However, minorityinvestors are often in a weak position, whose legitimate interests didn’t get effectiveguarantee, which seriously affected their investment enthusiasm, hindered the stabilityof the capital market and development of national economy. Based on the empiricalstudy of the relationship between equity structure and protecting minority investors,I’m trying to find out the checks and balances of equity structure to solve the problemwhich big shareholders violate the interests of small shareholders, in order to protectthe interests of minority shareholders.Under the circumstances of the above, the article combines two basic researchmethods—norms and empirical. First, I summarize the related theories about equitystructure and minority investors protection.Then from the ownership structure of2007-2012data to support,via the objective data analysis, describe the currentsituation of protecting minority investors and its damage mechanism. And then, fromthe perspective of the importance of protecting minority investors, I analyze how tobalance equity structure effects on protecting minority investors. Finally, we canconclude that to guarantee the legitimate rights and interests of minority shareholdersof listed companies in our country, effective policy guidance is essential.It can reducethe controlling shareholders of a listed company violation and protect minorityinvestors interests better.