Study On Economic Consequences Of Substantial Shareholders And Measures Of Checks And Balances

After China's shareholding split reform,the shareholding structure of listed companies has undergone a major transformation.At the same time,the shareholding structure of multiple large shareholders has increased significantly in listed companies.Such a shareholding structure can form checks and balances between large shareholders.Reduce the probability of major shareholders infringing the interests of small and medium shareholders,but at the same time,because the share of equity is almost the same,and equity is the most direct manifestation of the company's control,so based on the yearning for control,there are multiple large shareholders Companies,the risk of outbreak of control contention among shareholders is higher than that of companies with a relatively high concentration of equity.Competition between major shareholders will inevitably lead to instability of the board of directors,and the company's operating decisions and performance will also be affected to a certain extent.Zhang Caikui,the founding major shareholder of Shanshui Cement,after the share repurchase plan stimulated internal conflicts in the company,in order to introduce foreign aid to allot shares to China Building Materials,resulting in the dilution of its shareholding ratio,allowing Asian Cement and Tianrui Group to take advantage of the rapid increase in holdings in the secondary market After a large number of shares,Tianrui Group became the largest shareholder of Shanshui Cement and asked to re-elect the board of directors,which has triggered three battles for control.The development process of Shanshui Cement represents a stage that many private enterprises that have been changing and growing after the restructuring must go through.The outbreak of the problem is of general research significance.Therefore,this article takes the typical large shareholder conflict event of "Shan Shui Cement Control Rights" as an example,adopts a single case analysis method,and analyzes the relevant data of Shanshui Cement and the cement industry from 2012 to 2018 through comparative analysis.,The process of conflicts and the results of conflicts,an analytical framework that explores the economic consequences o f large shareholder shareholding competitions in the company's operating performance,corporate value,production and operation,and audit risks,and summarizes relevant recommendations for large shareholder checks and balances based on this.The results of the study found that during the competition for control of large shareholders,Shanshui Cement's operating performance,corporate value,and production operations were severely damaged,and the audit risk also increased significantly during the competition for equity.Through research,this article makes the following suggestions: For management,the leader's self-discipline should be improved;the proportion of shares in circulation should be reasonably controlled;the balance between the company's board of directors and management should be strengthened;institutional investors should be carefully introduced;and the controlling shareholder Good communication mechanism with external major shareholders;for the supervision of the market,relevant regulations should be continuously improved,and at the same time the supervision department should strengthen supervision.Finally,the research in this paper makes up for the fact that the majority shareholders have less research on equity contention and enriches the research level of economic consequences.It also has reference value for enterprises,investors and regulatory authorities.