Research On Financial Problems Of Majority Shareholders Capital Occupying In Listed Companies

Most of listed companies in China come from the state-owned enterprise restructuring, which give more emphases on financing than restructuring universally. In the recent decade, many listed companies have financed vigorously in the securities market, majority shareholders have occupied the capital of listed companies, "tunnelled" listed companies. Majority shareholders capital occupying has been a serious disease in securities market of our country, not only caused the collapse of a large number of listed companies, harmed the legitimate rights and interests of minority shareholders, but also hampered the healthy development of the securities market. In recent years, authority has attached important to majority shareholders capital occupying, and increase the total recovery efforts. However, the "clearing" is only a temporary measure, to ravel the correlative ingredients about majority shareholders and to keep new capital occupying within limits in the headstream is the permanent measure.The thesis is divided into seven chapters. On the basis of research by scholars at home and abroad, the author, on the one hand, explores the formation of the majority shareholders of listed companies in China, researches the account for capital occupying, and analyzes the motivation, the conditions and the target of majority shareholders capital occupying. On the other hand, not only the relationship between the equity refinancing of listed companies with majority shareholders capital occupying is discussed, but the blank of the empirical research about majority shareholders capital occupying with the amount of equity refinancing in our country is filled up as well.Capital occupying often occurs in the company with a huge surplus cash. Equity refinancing of listed companies is not only probably the will of majority shareholders. Moreover, a large amount of raising funds can easily become the target of majority shareholders. Therefore we selected the listed companies who had implemented equity refinancing in Shanghai stock exchange from 2000 to 2005 to be the research samples. Starting from the analysis of other receivables, we design the index -the rate of financing capital occupying. First of all, two assumptions about the relationship between the equity refinancing of listed companies with majority shareholders capital occupying are put forward, then other two assumptions about how majority shareholders capital occupying influences the achievements of listed companies are also put forward. Regression equations are established, then the analysis draws the following conclusions: First, the greater the amount of a listed company's equity refinancing, the more likely the higher capital occupying. Second, major shareholders occupy the financing capital of listed companies is a long-term process. This has fully confirmed the relationship between the equity refinancing of listed companies with majority shareholders' will. Third, the operating activities net cash flow of listed companies negatively correlated with majority shareholders capital occupying. Fourth, there is a negative correlation between EPS with majority shareholders capital occupying. This two conclusions show majority shareholders capital occupying would seriously affect the operating results of listed companies.The thesis then described the case of Lotus Flower Company, which has been tunnelled by majority shareholders. The specific causes of capital occupying are analyzed, which confirmed the conclusion of the front part. Finally, on the basis of summing up the paper, the specific solutions to majority shareholders capital occupying are bring forward, including equity structure optimization, creating a corporate governance structure, improving laws and regulations, strengthening external supervision and a sound system of information disclosure of listed companies.