Discussion On The Transfer Of Interest In The Injection Of Directional Additional Assets

Before the split share reform,due to the small size of China's securities market,the CSRC used to control the size of IPO companies and had strict performance requirements for IPOs,leading many companies to divest some of their core assets for IPOs,or "split the market".After the share-splitting reform,China began to encourage listed companies to acquire the assets of their group holding companies,in order to solve the competition between listed companies and holding companies,industrial chain segmentation and related transactions.The issuance of a series of policies by the SFC has led to a boom in Chinese listed companies to acquire unlisted assets of the group.However,the acquisition of group assets by listed companies is by virtual a large scale related transaction between the listed companies and the group company.Moreover,the related transaction is carried out under the control of the large shareholder,whether there is a interest transfer between the listed company and the major shareholder in this related asset acquisition quickly draws the attention of the academic field and all the participants in the securities market.This paper has five parts.The first part is the introduction,putting forward the research background,research ideas and the framework of this paper,as well as domestic and foreign literature review,analysis of China's listed companies targeted additional assets injection motivation,summed up the type of interest delivery and China's listed companies targeted additional assets injection to corporate performance and shareholder wealth research.The second part is the summary of theories of the interest conveying in the directional additional asset injection of the listed company in our country,explains the type and implication of the directional additional asset injection,sums up the reason and means of the listed company to the big shareholder's benefit transmission,and expounds the Information Asymmetry Theory,the Agent Theory,and the Control Right Theory.The third part is the case introduction of the directional additional assets injected by HengYuan Coal and Electricity Co.Ltd.The fourth part is the mechanism analysis of the directional additional assets injected into the interest conveying of HengYuan Coal and Electricity Co.Ltd.The conclusion is of the transfer of interest to the large shareholder in the directional additional assets injection of HengYuan Coal and Electricity Co.Ltd.and the Enlightenment obtained from it.Based on the theory of agency theory and benefit conveying,combined with thecharacteristics of directional additional asset injection under the special background of China's securities market,this paper takes the case of directional additional assets injected by Hengyuan Coal and Electricity Co.Ltd.as the research subject,and probes into the problem of the benefit transfer of the large shareholder in the process.The results indicate that:(1)There exists a phenomenon of transferring interest to large shareholders in the injection of constant source coal-directed additional assets;(2)The HengYuan Coal and Electricity Co.Ltd's directional additional asset injection takes various ways/channels to the big shareholder to carry on the benefit transportation;(3)The result of the injection of the directional additional assets of the constant source coal into the interests of the large shareholder leads to the decline of the company's operating performance(4)in the injection of fixed-source coal-directed additional assets,the listed companies ' benefit transfer to large shareholders leads to the loss of minority shareholders ' wealth.The research significance of this paper mainly has the following three points:(1)by doing the research on the motivation,behavior and influence of the listed company to the large shareholder's benefit through injecting the directed additional assets,it reveals the reasons,the channels and the economic consequences of the transfer of the directional additional assets of the listed companies in our country.The paper provides the evidence of the special case of the system problem in the injection of the directional additional assets of the listed companies in China.(2)by revealing the causes,ways and economic consequences of conveying the interest to the large shareholder in the injection of the directed additional assets of listed companies in China,this is beneficial to the regulatory Department of Securities and Securities in China to perfect the relevant system and carry out targeted supervision.(3)by revealing the causes,ways and economic consequences of the transfer of the directional additional assets of the listed companies to the large shareholder in China,it is also helpful for investors to understand the problems existing in the directional additional assets injection of listed companies in China,and at the same time the paper provides a reference platform for investors to invest.Taking the listed company of HengYuan Coal and Electricity Co.Ltd as an example,this paper makes a theoretical analysis on the problem of the transfer of interest in the course of acquiring the large shareholder's assets in the directional additional purchase.The main contributions of the study are as follows:First,the directional additional asset injection has become the upsurge of our country's securities market.This paper,basing on the special shareholding structure oflisted companies in China,studies the motives,behaviors and effects of the transfer of the interests of the large shareholder in the directional additional assets injection,and can reveal the mechanism of transferring the interest of the listed companiesSecond,by using the theory of relevance transaction,this paper analyzes the problem of the infusion of directed additional assets into the interests of large shareholders by the listed companies in China,and reveals the way of conveying interest of the listed companies to large shareholders in order to prevent our listed companies from injecting the interests of the large shareholders by the directional additional assets injection.Third,the reason analysis of interest transfer to big shareholder through directional additional assets injection in Chinese listed companies is helpful for foreign investors to understand the potential investment risks of dilution and interest transfer,and to encourage regulatory authorities to formulate policies to restrain listed companies from taking advantage of directed additional assets to transfer benefits to large shareholders.