| The delisting of listed companies is an important basic system in the securities market.A sound delisting system is an effective measure to protect the interests of small investors.In the past few years,China’s securities market has always had the problems of low delisting rate and difficult delisting.Many underperformance stocks evaded delisting by a lot of ways,which disturbed the normal order of the securities market.In recent years,our country has improved the delisting laws and regulations constantly,along with strengthened the enforcement.Especially with the introduction of the new Securities Laws in 2019,the relevant provisions on delisting were further clarified,which made those underperformance stocks lost the "buffer period".More and more delisting below par value appeared in the securities market,which highlighted the survival of the fittest function of the securities market.As the second listed company whose share price is lower than the par value for 20 consecutive trading days,Chuying Agro-Pastoral’s corporate governance problems reflected in the delisting were also common problems in many other companies in China’s securities market.Therefore,to study the delisting of Chuying Agro-Pastoral based on the perspective of corporate governance has a strong impact on the listed companies in the same industry and the whole securities market,which can give them some Warning and reference significance.To begin with,this paper summarizes the relevant literature of compulsory delisting from two aspects,one is the financial performance and corporate delisting,the other is the internal along with the external corporate governance and corporate delisting.This paper also reviews the relevant theoretical basis.Then,based on the literature review of corporate governance and delisting below par value,this paper constructs a logical analysis framework of how corporate governance influences stock price and delisting by Corporate Governance Theory,Principal-agent Theory,Asymmetric Information Theory,Contract Theory and Stakeholder Theory.Besides,this paper combines theory with cases,discusses the reasons why Chuying Agro-Pastoral was delisted below par value.This paper consists of several parts.Firstly,this paper briefly introduces the number,reasons and plate distribution of delisted enterprises in China’s current securities market,meanwhile,leads to the following case analysis combined with the overall industry environment and basic situation of animal husbandry.Secondly,this paper analyzes the internal and the external corporate governance of Chuying Agro-Pastoral together with the problems that have been questioned,which aims to sort out its process from listing to delisting.Thirdly,based on the logical analysis framework constructed above,this paper analyzes the reasons for the delisting of Chuying Agro-Pastoral from the perspective of internal governance structure and external governance mechanism.Through case analysis,this paper draws a conclusion that the weakening and invalidation of internal and external governance of the company,as well as the serious agency problems,which are brought about by it,make the interests of investors infringed constantly,lay a deep hidden danger for the company’s share price falling and par value delisting.From the perspective of the internal governance structure of Chuying AgroPastoral,it has an obvious characteristic of family governance.The ownership structure is excessively concentrated,which leads to the management decision-making subjectively.Its blind multiple expansion business makes the company heavily in debt.At the same time,the internal supervision organization is in vain,which provides convenience for large shareholders to seek private interests and infringes on the interests of the minor shareholders seriously.From the perspective of external governance mechanism,the dual effects of the African swine plague and pig production cycle make the industry in a downturn,which led to the company’s difficulties in the development of its main business,resulting in a series of chain reactions such as multiple loan law suits.In addition,the negative reports of the news media on its financial fraud and the failure of the audit organization’s responsibility also brought adverse effects on its governance failure and the outbreak of financial crisis.Therefore,this paper proposes that listed companies should pay more attention to the improvement of their internal corporate governance,optimizing the shareholding structure,balancing the interests of insiders reasonably,establishing a scientific personnel selection and appointment system,along with an effective incentive and restraint mechanism,besides,improving the independence of internal supervision.The minor investors should pay more attention to the risk of investment,invest rationally according to their ability,establish a correct investment view.Supervise Departments should strengthen supervision and give full play to their governance and guidance role.The innovation of this paper lies in two aspects.One is the research perspective.Through the internal and external analysis of corporate governance,combined with two types of principal-agent problems and some theories,this paper constructs a logical analysis framework of delisting below par value,which is complementary to the former study.The other is the case selecting.Chuying Agro-Pastoral was the first stock in the animal husbandry delisted below par value.This case is relatively novel and typical,which is advantageous to other listed companies in the same industry to improve their corporate governance ability. |
