Study On The Interests Of Minority Shareholders In The Process Of CCS Returning

These years,no matter regulators or Chinese investors,the attitude to China Concept Stock(CCS)returning of them changed from enthusiasm to inhospitality with the price of their stock experienced a whole parabolic curve.There is a vital question between this kind of rise and fall——Dose CCS returning impact minority shareholders in positive or negative?The high privatization price,low private placement price,the plan of private placement which is revised again and again,and finally withdrew of,Ziguangxueda,the case company of this paper is controversial.This paper utilized means of the combination of quantitative and qualitative to illuminate the performance,consequence and cause of the impact of the behaviors exerted on small shareholders' interests.After analysis,the paper finally draws the following conclusions,first,the behavior of high price of privatization and directional add-issuance exists the possibility of tunneling or cost passthrough which makes minority shareholders undertake the price of the returning.While the cost of CCS returning should be undertaken by decision maker of returning strategy,so as to achieve the integration of power and responsibility.The mismatching of power and responsibility can leads to unwise returning decision.Second,comparing to many others Ziguangxueda can be regarded as more strategic.Though under this condition,as the financial index of Xueda Education group indicated,the return of Xueda Education still can't create incremental value for shareholders in the short term which dues to the termination of directional add-issuance and the performance adopted former behavior presented in overseas markets.As a result,returning back to Chinese stock market blindly is not a wise move at least in the short term.The returning of CCS should emphasize on shareholders' interests,take the value creation as orientation,and make decision rationally and carefully which happens to the same view of relevant institution.Third,the weak sense of participation,the absence of institutional investors and the problem of corporate governance makes minority shareholders not be able to intervene key decision though their shareholding ratio can rival major stockholders.