Research On The Influence Of Capital Occupation By Major Shareholders On The Financial Performance Of Companies

The development of our country’s securities market has promoted the development of market economy and played a huge role in economic construction.However,the appropriation of funds by major shareholders during the development of the securities market has greatly curbed the development speed of our country’s capital market.The research background of this article is that after the shareholding structure tends to be concentrated,the ensuing agency problem between large shareholders and small and medium shareholders requires multi-party cooperation to eradicate the “stubborn disease” of this large shareholder’s infringement of listed company funds in the Chinese capital market.This is of great significance to the stability and development prospects of our country’s securities market and the effectiveness of future market resource allocation.This article selects Kangde Xin as a case company,based on the theories of corporate governance,principal-agent theory,etc.,and adopts research methods such as case analysis and literature research methods to analyze the causes,causes,and financial performance of Kangde Xin’s major shareholders’ interest encroachment.Analyzing the impact of the company,it is concluded that the actual controller of the major shareholder due to a dominant shareholding structure,controllable internal control environment,colludable audit institutions,and insufficient deterrent disciplinary measures have contributed to the occurrence of capital possession,which seriously infringes upon all Conclusions on the rights and interests of stakeholders.Finally,a series of suggestions and opinions on governance and prevention of capital appropriation were put forward at both the company level and the external level,in order to reduce such illegal capital appropriation behaviors in the capital market.The case selected in this article involves a large amount of money and involves stakeholders such as Rui Hua Certified Public Accountants and Bank of Beijing.It is typical and representative.The current research methods used by domestic and foreign scholars on major shareholders’ capital are mainly based on the results of many listed companies.Data is analyzed from a large sample or purely from a theoretical perspective,and lacks emphasis on specific case studies.This article is conducting a targeted analysis of Kangde Xin’s case,and horizontally comparing various financial indicators in the process of profit encroachment with the industry average,as well as being different from itself The vertical comparison of the period,excluding the external influence of economic environment and industry factors,concluded that the occupation of illegal funds has had a negative effect on Kangde Xin’s financial performance.After the illegal operation is exposed,it will have a more negative impact on the company.