Research On Controlling Shareholder's Occupying The Capital And The Corporation Value Of The Listed Company

Major shareholders of the listed companies occupying the capital have been the issue of China's capital market for a long time. Controlling shareholders of the listed companies who occupied the capital , seriously affect the normal operation of the listed companies, damage the interests of the listed companies ,so it influence the development of China's capital market becoming a major illness. In recent years, the situation of the occupied capital of the listed companies is quite amazing, the major shareholders of the listed companies used its power to make invasion and occupy capital of the listed companies, severely weakening the independence of listed companies and the quality of the asset, directly damage the small and medium-sized shareholders' legitimate rights and interest. Most of the listed companies' existed the problem that the related parties occupying the capital, the majority shareholder occupying the funds of the listed companies has become one of the biggest risks. Despite the country's relevant departments reiterated to solve the controlling shareholder of listed companies occupying the funds many times, under the national policy of controlling shareholder accounts for the issue of funding even some companies the controlling shareholder occupying the capital being more hidden. Depending on this background, the research of the controlling shareholder of China's listed companies occupying funds is very urgent and necessary; it makes a great theoretical and practical significance to ensure the China's capital market healthy, stable and rapid development.In this paper, I summarize the literature of the controlling shareholder occupying the capital by the reviewed firstly, and then endue the conclusion of the way of the controlling shareholder's acts of occupation, the causes and the performance. Then, this article explain that the controlling shareholder's occupying makes a grave economic harm to the listed companies as well as the stakeholders, based on the annals data during the 2004-2007.Finally, aiming at the cause of the controlling shareholder's occupying fund, combined with the model of the controlling shareholder's occupying capital, I advance several corresponding suggestions for improvement according to our country's situation.The conclusion of this paper is that the controlling shareholder's occupying capital causing a infinite economic harmful to the listed companies as well as the other correlations. The measures so far taken by the state, improving the structure of corporate governance, enhancing administrative supervision, and imposing legal punishment, haven't completely attained expected effect. Enhancing the efficiency of the security supervision department, these measures are ineffective and practical, maybe those are urgent for our country now.