Interests Of Small Investors The Protection Of Evaluation Index System

The protection of investor interests is an oldest title in securities market. In the earlier period of business reform, our government focused on authorizing to enterprise and reducing administrative interference meanwhile ignored the importance of the protection of investor interests, the governance of director board and so on. Until 1995, the concept of corporate governance structure started to be introduced to China. Because effective mechanism didn't come into being in most listed companies in China, many phenomena such as "major stockholders manipulation" and "inner-people control" became an access to violate the relative rules and then the minority interests were destroyed. As the main body in securities market, it is urgent to protect the interest of minority. Nevertheless perfecting the structure of corporate governance and modifying laws can not be accomplished in short time. The direct way to solve the problem of protecting the interests of minority is to let minority know more information about listed companies.Above all, according to the logical order, this article reviews the problem of the evaluation of the protection of minority interests with the combinable method of qualitative and quantitative analysis. A great deal of materials indicate that protecting the interests of minority is advantageous not only to economical growth and the stability and advancement of stock market, but also to the enhancement of company value.Therefore, the construction of evaluation index system in order to protect the interests of minority appears more important. Then through the domestic and foreign comparative analysis of the present situation of investors' interests protection, we find that the interests of minority are destroyed badly in China. Moreover, we can also find that the the structure of stockholder, the operation efficiency of director board and supervisor board, the encourage and restraint system for manager,the supervion of relative department, the audit quality of intermediate organization and the consummation of law about minority as well are all relative to the protection of minority interests. This article constructs the whole frame of the evaluation system and the index system of protection of minority interests by the theoreticl and gambling analysis of these above relative elements. We build a set of index evaluation system with nine first-grade index, twenty-six second-grade index and eighty-nine observation points. Finally this article puts forward some advice about how to put this evaluation system into pratice.