The Research On Large Shareholder's Tunneling In Private Placement Of Qinghai Sunshiny Mining Corporation

The phenomenon of large shareholder's tunneling occurs frequently with a trend of more and more complex and hidden. Besides, tunneling is not conducive to the development of the company and will damage the interests of minority shareholders. Therefore, it is significant and valuable to study tunneling. The private placement is the main way of equity refinancing and itself has no damage to the interests of minority shareholders of listed companies. Because the purchase involves the redistribution of old and new shareholders'interests and current investors'protecting environment is not very good, large shareholder has many opportunities to tunneling. Therefore, the research on large shareholder's tunneling in private placement of Qinghai Sunshiny Mining Corporation has certain practical significance.This article conducts research mainly based on principal-agent theory. Firstly it finds that the company two rights separation degree of Qinghai Sunshiny Mining Corporation is high and the large shareholder has much motivation through the tunneling to maximize their interests, based on the analyze tunneling behavior motivation of Qinghai Sunshiny Mining Corporation. Secondly it finds three implementations of the tunneling by large shareholder in the private placement. Thirdly, this article analyzes the reasons of large shareholder's tunneling behavior on the basis of the theory of corporate governance which include that general meeting of shareholders does not on behalf of all shareholders' interests and the goal of board of directors'decision is to maximize large shareholder's interests, the board of supervisors'efficiency and audit quality of CPA are low. Fourthly, this article proposes solutions from the perspective of corporation governance.This article conducts research on large shareholder's behavior in private placement of Qinghai Sunshiny Mining Corporation and finds large shareholder condunts tunneling during this time. Besides, this article propose solutions based on the cause analyzation.