Research On The Motivation And Governance Of Large Shareholders' Tunneling Under The Full Circulation

In the era of the split share structure,large shareholders always use the way infringe the corporate to benefit expropriation for the interests originally belonging to minority shareholders'.However,in the full circulation era,the motivation for expropriation is more intense,the act of embezzlement is more complex and subtle,which has caused huge losses to the small investors and hindered the healthy development of China's capital market.It is very important to study the large shareholders' motivation for expropriation in the full circulation era.This paper analyzed the research findings and methods at home and abroad,and summarized the path and treatment for benefit expropriation behavior.At first,this paper deduced the motivation for expropriation for large shareholders through related angles from economic theory.The three major motivations are: incomplete property rights leading to the chasing for control power's interests,the information asymmetry leading to adverse selection and moral hazard,and the share of supervision and earnings leading to lower internal and external monitoring efficiency.This paper then deduced that the direct motivation for large shareholders' benefit expropriation changed a lot in the era of full circulation through analyzing institutional background in China in this period,that was,in the era of full circulation,the motivation for large shareholders' benefit expropriation changed to mainly getting capital appreciation and at the same time to transfer and acquire resource.Furthermore,this paper concluded the path to benefit expropriation behavior through analysis for typical case about shareholders' benefit expropriation in the era of full circulation and the samples' data statistics for benefit expropriation of shareholders who were investigated by supervision department.Combining the literature review and theoretical background of the system,this paper further illustrated a classic case: Zhongkeyunwang(Large Shareholder)Expropriation cases.Through the analysis for basic situation,expropriation motivation and expropriation behavior path analysis,the conclusion of the background of the theory system is that the large shareholder of the case company is mainly to obtain the excess capital gains,transfer and occupation of resources,and to use a variety of composite paths to occupy the small and medium shareholders' interests.Finally,this paper made conclusions and gave suggestions to improve listed companies' inner governance mechanisms and protect the investor's external governance mechanism.