Case Analysis Of Funds Occupation By The Major Shareholders Of Tian Xiang Environment

In the past three decades,our country's capital market has always been based on the development of the national economy,which also has made important contributions to promoting economic construction and social development.Today's capital market,regardless of the amount of financing or the number of investors,already has a considerable scale.For enterprises,the capital market is an important channel for raising funds.Most companies have expanded their business scale through listing financing,and their operating performance has steadily increased.In recent years,the agency problem between major shareholders and minority shareholders in our country has become increasingly prominent,and the incident of funds occupation by major shareholders has occurred frequently.Bad capital occupation not only seriously damages the interests of listed companies,but also causes irreparable losses to small and medium shareholders,greatly damaging the confidence of investors.How to take effective measures to eliminate the phenomenon of funds occupation and promote the healthy development of listed companies and capital market has become an urgent problem in our country.This article starts from the background of the increasingly serious problem of funds occupation by major shareholders.Based on the current academic research on funds occupation,a research method combining literature induction and case studies is used to summarize the basic concepts,reasons and implementation methods of capital occupation.Subsequently,by introducing the company's basic situation,shareholding structure and governance structure,this article reveals the controlling relationship and governance mechanism within Tian Xiang Environment.On this basis,the behaviors of major shareholders using the loans,related party transactions,and illegal guarantees to occupy the company's funds are explained in detail.Afterwards,this article deeply explores the motivations of major shareholders for illegally occupying funds and the reasons for their realization.It proposes that capital shortages caused by excessive investment,facing debt repayment pressure and limited financing are the main motivations for major shareholders to occupy funds.Weak governance mechanisms,ineffective internal controls,and poor supervision by the regulatory authorities are the main reasons for major shareholders to achieve funds occupation.Based on the above viewpoints,this paper further analyzes the impact of funds occupation by major shareholders from the perspectives of enterprises and interest stakeholders.On the one hand,funds occupation reduces the company's solvency and operating capacity,which will lead to the company's sustainable development capacity and market value;In the extreme case,occupation of funds also reduces the return on investment of small and medium shareholders,damages creditors' due debts,and in extreme cases will cause the major shareholder's own control to be transferred.Based on the previous research content,the following conclusions are reached: Firstly,major shareholders rely on a centralized equity structure to control shareholder meetings and the board of directors,which creating conditions for successful funds occupation;Secondly,the blind investment of major shareholders creates a funding gap,which triggers the motivation to occupy the company's funds;Thirdly,the ways in which major shareholders occupy funds are diverse and hidden;Fourthly,the behavior of major shareholders' funds occupation seriously damages the interests of the company and stakeholders.In response to the specific problems in the case,this article also gives the countermeasures and suggestions.First,companies with too concentrated shareholding structure should try to improve the balance and diversity of the shareholding structure.For example,companies can diversify their shareholding structure by introducing institutional investors and strategic investors,it provides protection for the effective prevention of large shareholder capital occupation.Secondly,the major shareholders should fully consider their own capital status and the feasibility of the investment project when investing,plan the use of funds reasonably,avoid blind investment and excessive consumption of funds.Thirdly,the regulatory authorities and third-party intermediaries should strengthen the supervision of related party transactions of listed companies,focusing on checking related party transactions of enterprises,paying attention to the behavior of companies disguising related party transactions as unrelated transactions,and using insurance mechanisms to prevent them if necessary.Finally,companies should set up a daily supervisory organization to prevent the capital occupancy of major shareholders,strengthen the control of internal processes,and implement the corresponding authorization approval procedures.The contributions of this article are manifested in the following points:Firstly,the current researches on funds occupation of major shareholders at home and abroad are mainly based on empirical analysis of major samples,and lack of specific case studies.Based on the actual situation of Tian Xiang Environment,this paper verifies and analyzes the related theories of capital occupation from the perspective of case studies,provides complete and detailed case materials,and enriches the research on capital occupation of major shareholders.Secondly,from the perspective of research,previous researches mostly focused on the influence of a single factor on the capital occupation of major shareholders.This paper explores the causes,conditions and effects of capital occupation of major shareholders from multiple perspectives,which is helpful to establish a systematic analysis perspective.Finally,the analysis of typical cases helps reveal the mechanism of the funds occupation behavior,it also provides a theoretical basis for the company to prevent the major shareholder's funds occupation,investors to avoid investment risks,and improve governance policies of regulatory authorities.