Study On Tunneling Behavior Of Sihai Limited's Major Shareholders

The agency problem has always been a difficult problem of corporate governance,the first kind of agency problem is the contradiction between shareholders and managers,and the second agency problem is the contradiction between large shareholders and small shareholders.However,with the continuous improvement of the corporate governance mechanism,the first type of the agency problem is easing up,but the second type of the agency problem between large shareholders and small shareholders becomes increasingly sharp.Large shareholders tend to take advantage of the ownership of the company's control to damage the interests of listed companies and minority shareholders.In recent years,large shareholder tunneling of listed companies is seriously disrupting the orderly operation of the capital market.In this paper,we analyze the causes of the major shareholders' tunneling behavior,and include the methods and the consequences in a comprehensive way.And try to put forward the measures to solve the tunneling behavior of the major shareholders in a certain extent.The behavior of the tunneling causes by both the internal factors and the external factors.Internal factors include the separation of control rights and cash flow rights caused by the structure of the ownership and the failure of the internal control.The external factors are supervision and punishment not strict enough to promote the tunneling behavior of the major shareholders.Therefore,this article believes that the structure of the internal shareholding and the external supervisors are not properly constrainting the behavior of large shareholders tunneling.The study found that the main ways of tunneling behavior of the Sihai company are the transfer the high quality of assets to the low quality of assets,related to party transactions and mergers and acquisitions.The transfer of high-quality assets is mainly for the Ji'nan Shijin test machine limited company.In the same time,sell the equity of Beijing Shidaizhifeng Technology Co.Ltd..M&A is mainly divided into three steps:tunnel,put in the low quality of the assets and reduce the holdings.The tunneling consequence are both the listed companies and the small shareholders seriously damaged.Whether from the profitability or the ability,the overall interests of listed companies reduce sharply.Medium and small shareholders have not received the dividend distribution,but also did not get the benefits of capital gains.Therefore,this paper finds that the tunneling behavior of major shareholders has seriously hurt the interests of listed companies and minority shareholders.Finally,this article try to put forward the ways of preventing the main shareholders' tunneling behavior from the perspective of legal aspect,regulation aspect and the listed company aspects.Try to find ways to protect the interests of small investors.