Study On The Separation Of Control And Cash Flow Rights And The Interests Of Minority Shareholders

With the continuous development of the capital market and investor protection consciousness gradually increas ing, how to better safeguard the legitimate rights and interests of investors, especially the interests of minority shareholders, which has become a hot research stage. The view of the previous studies has found that the company’s ownership structure in many countries have been new changes, structural features from dispersed ownership into ownership concentration, C hina is no exception. In the highly concentrated ownership of the company, agency problems are no longer confined to the conflicts between owners a nd managers, and conflicts of interest between controlling shareholders and minority shareholders, that is, we usually refer to the second type of proxy issues, have become the focus. The most important feature of ownership concentration is the separation of control and cash flow rights, and the controlling shareholders are the actual controller of the company, and often only consider their own interests, this will take control of the hand to grab the interests of minority shareholders inevitably in order to achieve their own benefits maximize, so how to restrict this happens and safeguard the interests of minority shareholders is the desire of each minority shareholders, which is also an important aspect of the stage scholars concerned.Investor Relations Management, referred to as IRM, firstly appeared in the developed western countries of prosperous cultural and equity capital markets.In foreign countries, IRM is highly valued and the IRM research has reached a certain stage, but also has achieved some results. China’s capital market development is slow, although in recent years domestic scholars have begun to focus on IRM, but most company executives have not realized the importance of IRM, the level of IRM is still relatively low. Ander the current situation, studying the related action of IRM can accelerate the process of China’s IRM, and better promote the development and maturity of IRM in our country. In most foreign countries, IRM have been used as an important mechanism for the protection of minority shareholders, then in China, can IRM also affect the separate ownership structure and protect the interests of minority shareholders? In view of this, this article is to study the effects between the separation of ownership and damage of the interests of the minority shareholders in the perspective of IRM.This paper selects companies listed in C hina’s Shanghai and Shenzhen in the 2014 as samples, firstly, the IRM index was constructed based on the investor relations section in the official web site of listed company, on this basis, empirical research is designed around the relations between the IRM, the separation of ownership and the damage about interests of minority shareholders and the effect of IRM on the relations between the separation of ownership and the damage to interests of minority shareholders. The results show that the level of IRM is negative correlation with the damage to interests of minority shareholders and high levels of IRM can help curb the damage to interests of minority shareholders; the degree of separation is positive correlation with the damage to interests of minority shareholders, the greater the degree of separation of two rights, the more likely to cause damage to the interests of minority shareholders and the greater the extent of the damage; IRM significantly affect the relation between separation of two rights and the damage to interests of minority shareholders, that is, investor relations management suppress the positive effect between the separation o f ownership and the damage to interests of minority shareholders, compared with the lower levels of IRM, IRM is conducive to restrain the affect the separation of ownership on the damage to interests of minority shareholders. On this basis, this paper puts forward relevant recommendations according to the relevant conclusions and instructs the existing problems and research prospects for the future to enhance the focus on IRM of listed companies, and provides a new angle to the research on the damage to interests of minority shareholders.