Research On Tunneling Of Major Shareholders In Wuika Times From The Perspective Of Internal Control

There is often a dominant phenomenon in joint-stock companies,and it is not uncommon for major shareholders to make use of their own equity advantages in a dominant company.Since the concept of internal control has been clarified,internal control has become an important part of enterprise management.Effective internal control can prevent the tunneling behavior of major shareholders so as to protect the rights and interests of minority shareholders.However,there is a certain lag in the existing means of internal control and the lack of effectiveness of internal control in some companies,and the means of tunneling by major shareholders emerge one after another one after another.some tunneling means are not illegal in the actual operation process and will not immediately affect the interests of the enterprise,which makes the major shareholder tunneling events occur frequently.The internal control index of domestic listed companies has shown a downward trend every year since Dieber released the internal control index of Chinese listed companies.it is mainly reflected in that the audit reports of internal control of listed companies are issued with non-standard opinions and internal control defects are rising every year,the overall internal management level is not very optimistic,the rights and interests of enterprises and minority shareholders can not be effectively protected.In-depth study of the tunneling of major shareholders and the internal management level of listed enterprises has become the most important goal.This paper is based on the reasons for the tunneling of major shareholders and the low effectiveness of internal control from the perspective of internal management,and puts forward relevant suggestions for the improvement of internal control.This paper uses the case analysis method to select the typical Huijia era as the research object,and analyzes the new tunneling methods of major shareholders in the Huijia era,such as related party transactions,capital sublending and equity mortgage.the profitability of equity and the decline of the overall price in the Huijia era have caused serious consequences,and the fact of hollowing out is introduced.Based on the five elements of internal control,this paper analyzes the tunneling means of the new major shareholders,and concludes that there are serious deficiencies in the internal management in the Huijia era,and the new tunneling means and reasons of the expanded major shareholders.it provides some suggestions for the internal management of the enterprise.In this paper,the Huijia era is taken as the research case of this paper,and it is concluded that there are serious problems in the internal management of the Huijia era,such as serious environmental imbalance,lack of risk assessment,weak ability of control activities,incomplete information communication,insufficient supervision and so on.There are serious problems in every element.In this paper,the use of actual case combination of the current internal control system,from the five elements according to their own characteristics to select indicators to further improve.I only hope that this study can effectively ensure the internal control of listed enterprises,so as to effectively ensure the rights and interests of medium and small investors.