The Research On Tunneling In The Process Of Private Placement

Since the shareholder structure reform, the private placement has become an important way of equity refinancing of listed companies. Because of its unique advantages of issuance way, simple procedures, pricing flexible, the amount of funds freedom, the private placement is favored by many listed companies.Major shareholders of listed companies inject assets through private placement into the listed companies is the more common. The major shareholder inject quality assets into the listed company, which is not only conducive to resolving the remaining issues of the period of split share structure, improve the industrial chain of listed companies, but also reduce related transactions and horizontal competition. But because of our related rule and legal system of the private placement is not perfect, the objective of environmental conditions which provide the possibility for the major shareholders’ tunneling behavior. At the same time, because of the shares’ higher concentration phenomenon, making the agency problem between large shareholders and minority shareholders is particularly serious, it also resulted in a growing number of inject assets thought private placement phenomenon hidden a chain into the listed company transfer benefits to the controlling shareholders.This paper analyzes a combination of theoretical analysis and case studies to explore whether there is a transfer of benefits in the private placement of assets injection, the delivery methods and means of the transfer of benefits which large shareholders taken, the impact and economic effect of the transfer of benefits from this process, and some suggestions for government regulators and small investors.