Research On Major Shareholders’ Tunnelling Based On Medium And Small Investors Investor Protection

With the continuous growth of China’s securities market,various violations have gradually become prominent,and some problems to be solved have emerged,especially the encroachment of major shareholders of listed companies.Major shareholders embezzle the company’s funds through various ways,and the more common ways include illegal guarantee,joint borrowing,direct borrowing and the transfer of assets through related party transactions.Due to the hidden and complex means and frequent interest encroachment,it is more difficult for the regulatory authorities to identify and prevent such behavior,which seriously damages the legitimate rights and interests of listed companies and small and medium-sized investors,and even leads to the risk of delisting.Due to the major shareholders of listed companies inside information,the company’s internal financial situation and related party information,compared with small and medium-sized investors belongs to the information advantage,therefore,the big shareholders interests encroachment behavior depth research is more important,and to a certain extent helps to curb the interests of encroachment behavior.This paper deeply discusses the interest encroachment of major shareholders of ST Kedi,which not only seriously affects the operation of listed companies,causes huge economic losses,but also damages the rights and interests of minority shareholders.This paper first combs the literature and theories related to the interest encroachment of major shareholders,Based on this,we can build the theoretical framework of this paper;next,ST Kedi was selected as an object for the research,To out the means of the encroachment of the interests of major shareholders during 2019,Then using the fraud risk factor theory to analyze the causes of the behavior implementation,Through the research,it is found that the major shareholders’ subjective escape psychology,internal and external factors provide conditions for interest encroachment;Then explore the path of the formation of interest encroachment behavior,Lay the foundation for the suggestion of curbing the encroachment of the interests of major shareholders later;once more,The interest encroachment behavior has caused a significant negative impact on the business performance of the listed company,Lead to small and medium-sized investors in the holding income and disposal income suffered large losses.Finally,it puts forward suggestions to improve the internal control and external supervision of listed companies for the protection of the interests of minority shareholders.Here,the following conclusions are drawn through the above studies: in the means of occupying the interests of major shareholders,Major shareholders use diverse and hidden ways to occupy the capital,And the way is changeable,and it lasts longer,Such as capital occupation,illegal guarantee and equity pledge and other means;In the cause of the encroachment of major shareholders,Its major shareholders facing the financial crisis will make it produce a subjective escape psychology;Secondly,due to the unreasonable ownership structure,imperfect information disclosure system and the failure of independent directors to give full play to their supervision function,the possibility of interest encroachment for their major shareholders,Third,the low cost of violation and external intermediary institutions do not fulfill the interests of major shareholders to provide an opportunity;at the same time,This interest encroachment behavior has brought a huge negative impact to the business performance of the listed company,Make the minority shareholders hold income and disposal income to produce significant losses.Finally,from the perfect internal governance ability,strengthen information disclosure,strengthen the intermediary responsibility,intensify illegal penalties and focus on the abnormal financial situation of listed companies five levels get enlightenment and put forward targeted Suggestions,hope through the study of major shareholders of listed companies to provide some reference,to curb the interests of occupation behavior.