Analysis On The Influence Of Tunneling By Company Insiders On Mergers And Acquisitions

China's capital market has become increasingly active.Thousands of corporate mergers and acquisitions have taken place every year,and there has been an increase in the number of incidents that have been captured by internal controllers of mergers and acquisitions.The act of being hollowed out by the internal controller of an acquired enterprise not only jeopardizes the daily operations and development of both companies,but also harms the interests of the enterprise managers and owners,and is not conducive to the healthy development of China's capital market and national economy.Taken together,the existing research mainly focuses on the causes,methods,and impacts of the corporate insiders' short-skinned behaviors,and lacks the countermeasures for targeted prevention of insiders' short-selling on the corporate position.In view of this,this article researches and summarizes the existing research results of the current domestic and foreign scholars on the premise of the research results,and carries out relevant analysis and argumentation on the basis of this,and provides some countermeasures for how to prevent the occurrence of internal hollowing out in the process of mergers and acquisitions.Suggest.This paper uses the case analysis as the research method,selects the “Xinyangzhou incident” as an example,and realizes the effect of the point of view by analyzing the case.In view of this,this article researches and summarizes the existing research results of the current domestic and foreign scholars on the premise of the research results,and carries out relevant analysis and argumentation on the basis of this,and provides some countermeasures for how to prevent the occurrence of internal hollowing out in the process of mergers and acquisitions.Suggest.This paper uses the case analysis as the research method,selects the “Xinyangzhou incident” as an example,and realizes the effect of the point of view by analyzing the case.The occurrence of the "Xinyangzhou Incident" directly led to the failure of the merger and acquisition business,and further reduced the operating and financial quality of Zhongshui Fishery Company,the frustration of its development strategy,and the damage to the interests of shareholders and investors.Judging from the reasons,the main reason for this incident was the failure of M&A risk assessment and the failure of merger and acquisition integration.Specifically,the failure of mergers and acquisitions risk assessment of ZhongshuiFishery Company is mainly reflected in the excessive reliance on external audit of M&A risk assessment.It has not discovered the operational and financial problems of M&A in a timely manner,and has not discovered the internal control loopholes of M&A in a timely manner;It is reflected in the fact that the actual control right of the acquired company has not been obtained in time,the fact that the performance did not reach the stipulations in the merger clause,the lack of effective supervision and management of the day-to-day operations of the merged company,and the lag in merger crisis management.Through the analysis of this paper's case,we obtained some inspirations from the stages of M&A preparation,M&A integration and legal market.In the M&A preparation stage,companies should improve M&A risk assessment and multi-faceted supervision systems,strengthen financial prudential investigations,and pay attention to non-financial due diligence;in the M&A integration stage,companies should strengthen M&A business practices,improve information disclosure mechanisms,and improve enterprises.The integration of internal controls,the establishment of mergers and acquisitions crisis management mechanism;at the legal and market level,improve the relevant laws and regulations of corporate mergers and acquisitions activities,strengthen the supervision and management of corporate mergers and acquisitions activities,and increase the punishment of insider short-sighted behavior.