Major Shareholders' Tunneling Under Dispersed Ownership Structure

The tunneling of listed companies in China mainly because of the highly concentrated shareholding structure.In this case,the major shareholders may use their absolute control rights to harm the interests of listed companies.Therefore,people believe that the dispersed ownership will form the balance of equity and decrease the tunneling of major shareholders.However,with the decentralization of ownership structure,the problem of major shareholders' tunneling has not decreased.Under the decentralized ownership structure,what are the mathods for major shareholders to take,and why they can control the company and invade the interests of listed companies at a low ownership ratio become issues that need to be studied.In the future,there will be more and more listed companies with diversified shareholding structure.Therefore,it is of great significance to study the tunneling problem of major shareholders of such companies and find out the countermeasures to improve the governance of listed companies in the uture.Company P2 P with dispersed ownership has continued to burst into tunneling,illegal disclosure of information,serious financial difficulties,company stock speculation and other negative news.The major shareholder of P2 P was not only fined 3.4 billion RMB,but also detained.This article analyses the reasons and means of major shareholders tunneling and find the negative impact on listed companies and external investors.This article also attempts to give recommendations based on the reasons for tunneling,hoping to reduce the tunneling of major shareholder in China.