Study On Capital Occupation Of Major Shareholders Of St Shede From The Perspective Of Internal Control

In the capital market,the problem of major shareholders occupying the funds of listed companies occurs frequently and has not been fundamentally solved,this is inseparable from the company’s own equity distribution,governance structure,internal control,etc.Welldesigned and effectively-implemented internal control can improve the efficiency of management,timely find loopholes in management,avoid decision errors,and also provide good environment for the company’s business development,but now many companies in the capital market set up internal control just in order to cater to regulators,the system is not adapted to their own situation,deviating from the purposes of allocating resources efficiently and optimizing internal process management.This paper puts forward an innovative and unique perspective on the reference of previous relevant research and makes an in-depth analysis of the defects and problems in internal control behind the occurrence of the negative event of the capital occupation of ST SHEDE(now SHEDE SPIRITS).The purpose of this paper is to summarize and reflect the occurrence of the event for the company and put forward suggestions and countermeasures for the improvement of internal control in the future.The case study in this paper adopts various methods such as event study,qualitative and quantitative analysis and on-the-spot observation and interview.Starting from the case itself,the whole process of the event is sorted out,and the motivation of the major shareholders is analyzed in combination with the situation of TIANYANG Holding Group,the major shareholder of ST SHEDE at that time.Since the capital occupation event initially occurred in 2018,the annual report data of the company from 2017 to 2020 after the completion of the capital occupation event are collected for financial analysis.And through the CSMAR database downloaded ST SHEDE in three selected events of the stock market data for in-depth analysis of economic consequences.Secondly,based on the communication and interview contents with some core management personnel inside the enterprise,the causes related to internal control behind the event are explored.Combined with the analysis,the following conclusions are drawn:(1)Since the company timely handled the self-examination and disclosure of the event,it did not have a great impact on the business performance.In the short term,it had a certain impact on the company’s cash flow and had a certain negative impact on the capital market.(2)It is because of the defects of internal control that the major shareholders take advantage of equity to occupy capital.(3)ST SHEDE should strengthen the construction of internal control,optimize the organizational structure,improve the internal control process,improve performance and avoid the occurrence of capital occupation by major shareholders.This essay has a certain warning and reference value for the enterprise itself,it also plays a role of vigilance and reflection for similar problems in the same industry enterprises and the capital market,which has a certain theoretical and practical significance.