Research On Tunneling Behavior And Governance Of Large Shareholders

China's capital market has developed vigorously for nearly 30 years and made great progress.However,there are some irregularities in the progress of capital market.For example,major shareholders usurp the assets of listed companies and empty out the listed companies.Because the stock rights of Listed Companies in China are relatively concentrated,the controlling shareholders have an overwhelming say in participating in the operation and decision-making of listed companies by taking advantage of their control position.This also gives large shareholders the opportunity to misappropriate and transfer the assets of listed companies through related transactions,illegal guarantees and other means.The behavior of large shareholders tunneling out of listed companies not only seriously infringes the interests of small and medium shareholders,but also causes great trouble to the healthy development of China's capital market.Therefore,how to prohibit large shareholders' tunneling behavior and improve the governance level of listed companies has become an urgent problem to be solved.In this context,this paper uses case study method,literature research method and qualitative and quantitative analysis method to study the case of Huayi Electric tunneling.It is found that the main reasons for the tunneling behavior of Huayi Electric's major shareholders are as follows: first,the major shareholders are in an absolute holding position,and other shareholders are weak and have no voice;second,the board of directors and the board of supervisors fail to play their due role,and Huayi Electric's major shareholders are superior to the company's internal control;third,the third-party intermediary fails to fulfill the duty of diligence;fourth,China At present,there are still some deficiencies in the relevant laws and regulations,which do not effectively inhibit the tunneling of major shareholders.Finally,based on the results of case analysis,the following suggestions are put forward to prevent major shareholders from hollowing out listed companies.In order to prevent the behavior of large shareholders hollowing out the listed company from happening again,it has certain reference significance to protect the interests of listed companies and prevent the interests of small and medium shareholders from being damaged.