A Study Of Large Shareholders Expropriation Small Shareholders' Interest In Chinese Listed Companies

The phenomena that large shareholders expropriate small Shareholders' interest will occur frequently in our stock market , which has been one of the most difficult and focusing problem to regulate and develop our stock market.The result of substantial empirical studies shows that the degree of large shareholders' expropriation in china is more serious than that in mature capital market, such as US and Great British, but I think above empirical study is lack of comprehensive process and institutional analysis, So taking Chinese market unique characteristics into consideration, we mainly explains and analyses expropriation behaviors and process , institutional cause and institutional establishment so as to regulate large shareholders' behaviors and protect the interest of small shareholders.The conclusion of this paper shows that serious agency conflicts caused by sole state shareholders and equity dissevering between large shareholders who own non-tradable stock and small shareholders who own tradable stock, which is also based on agency conflicts in between them in circulation market , which finally result large shareholders' expropriation more serious. Their means include seasoned equity offering divide policy and relation transaction. therefore ,we must improve various internal and external corporate governance mechanisms and establish legal institution...