Exploration Of The Actual Controller's Tunneling From Social Capital Perspective

Corporate Governance is related to sustained and healthy development of the company and microeconomic vitality of the country.However,some actual controllers of listed companies bypass the regulatory authorities,seize the interests through hidden means,and lead to financial crisis of listed companies.Some companies even become empty shell,bankruptcy or delisting.The actual controller's tunneling is an urgent problem to be solved in corporate governance field at present.Most scholars from overseas study the actual controller's tunneling from the analysis paradigm of "equity control chain".However,this method does not apply to the countries with more concentrated stock rights.China is a country with concentrated ownership and special attention to social relations.So it is suitable to study the actual controller's tunneling from social capital.perspective.Therefore,this paper choose Zhenxing Biopharmaceutical and Chemical Co.,Ltd as case study.The actual(?)controller enhance his control from shareholders,board of directors and managers,thereby increasing the separation of control and cash flow rights,and gain motives to promote his tunneling.Through the research on the actual controller's tunneling,this paper draws the following conclusions:the chaotic corporate governance structure can lead to tunneling;good social capital can bring convenient to the actual controller's tunneling;the invisible actual controller makes the tunneling more hidden.In view of the above conclusions,this paper puts forward some suggestions on how to optimize the governance structure of listed companies,identify social capital and invisible control,and strengthen external supervision mechanism so as to prevent and control the actual controller's tunneling,and better protect the rights and interests of listed company and minority shareholders.The innovation of this paper is taking the actual control person as the research point,and using a new perspective of social capital on the actual controller's tunneling of the study.This research enriches tunneling theory and provides practical significance for the sustained and healthy development of China's capital mark.