| Under the background of having one large shareholder in listed companies, because of the ownership structure, the conflict between the large shareholders and minority shareholders interest becoming more and more serious, so does the tunneling behavior of the large shareholders.That’s made the minority shareholders interest encroached by the large.Related party transactions is one of the most commonly means to tunneling by the large shareholders. They use the complexity and secrecy of related party transactions to manipulate their profits and for their own personal gain.As the system regulation is improving, related party transactions are becoming increasingly difficult to identify. As the well-known listed companies in Northeast China, Zixin Pharmaceutical has been little improvement in the performance listed since 2007. However, performance suddenly soared exponentially since 2010, causing widespread concern and discussion community. Until 2014, the China Securities Regulatory Commission announced the fact that Zixin Pharmaceutical has reported the false disclosure and conceal the related party transactions, which turns into reality.Based on the principal-agent theory agent problems between the large shareholders and the minority shareholders, this paper analyzes and summarizes the form and factors influence of tunneling, in the way of one case to recognition and analyze the Zixin Pharmaceutical which related party transactions and tunneling happened in 2010.And analyze the financial status since listed. Focus on analyze the occurrence of time when it before and after the related party transactions under the condition of tunneling. Discuss the economic consequences affects to the enterprise itself, shareholders, creditors. Finally, the paper make recommendations from five aspects: ownership structure, corporate governance, mechanism to protect the interests of minority shareholders, information disclosureand external supervision. |
PDF Full Text Request