Research On The Reasons And Effects Of Capital Occupation By Major Shareholders Of Companies Listed On The NEEQ

With the rapid development of China's economic market,more and more SMEs have gained a place in the market.Faced with the same funding needs as large companies,the securities market industry needs to provide a platform for SMEs to attract social funds,so the National Equities Exchange and Quotations(the NEEQ)market has launched securities.Similar to other securities trading venues,the NEEQ also attracts more investors to bring funds into the market by listing on the market,thereby enabling enterprises to expand themselves and achieve better development.But the new third board should serve the development of innovative,entrepreneurial and growing SMEs,and the barriers to entry for enterprises are relatively low.Therefore,enterprises will also face many problems in the development process after the listing of the NEEQ.The most typical one is the issue of capital occupation by major shareholders.There are many small,medium and micro enterprises that are mostly family-based management and control before they are listed,and it is difficult to change the management system even after listing.Through research,it is found that many large shareholders use absolute control and use various methods to obtain corporate funds for their own or undisclosed small enterprises after going public.Under the above background,this article takes the fund occupation of Fenghui Medical's major shareholders as a case study object,and studies the behavior of its major shareholders' illegal fund occupation.The major shareholders of Fenghui Medical have been occupying small amounts of funds for many years.Because of their good cover-up,they were not noticed.Until the listing in 2016,large-scale fund occupations led to company litigation,and it was difficult to maintain normal operations after the funds were frozen.Bankruptcy liquidation was conducted in 2018,and the company officially announced its delisting.So far,Fenghui Medical has become the first bankruptcy and delisting of the NEEQ,causing many small and medium shareholders to suffer losses,and has brought adverse effects to the NEEQ market.The literature research method is used to review and review the relevant literature at home and abroad,and draw the main analysis directions of the major shareholders' capital occupation and summarize them.The case study method is used to analyze the research object of the article,including the basic situation,operating conditions,shareholding structure,governance structure,the main situation of the major shareholder's capital occupation,and data analysis of the major shareholder's capital occupation method and account performance.By analyzing the financial data of the influence of the major shareholders 'capital occupation through comparative research methods,it is concluded that the major shareholders' capital occupation caused the four dimensions of financial indicators,and debt repayment,operation,profitability and development ability were adversely affected to some extent.It has adversely affected the company's image,other investors,and reduced the efficiency of the securities market to allocate balanced capital and investors' confidence.Based on the comparison of the main board market or foreign excellent experience,three suggestions were made to improve the company's management and governance mechanism,optimize the company's internal control,and increase market supervision and punishment.