Majority Shareholder Tunneling Or Supporting

Early due to the limited size of China’s securities market, having the company listed is a scarcity of opportunity, so a large proportion of large and medium-sized enterprises can only choose the way of separate listed with part of the assets while the remaining left in the parent company. Equity carve-out indeed played a certain role in the history of the specific economic context, but the drawbacks of the model is gradually exposed, such as a large number of horizontal competitions, unfair related party transactions and majority shareholders tunneling.All of this gradually become a prominent problem. Since companies overall listed through the way of private placement was legalized, many group choose this way to make their overall listed in order to solve the problem of corporate governance.The reason why overall listing through targeted additional is so popular is that this model maybe the good solutions of corporate governance. Many scholars believe that this model is not only to strengthen the resource integration between mother-daughter Company, but also improve the corporate governance structure and prompted the listed company bigger and stronger. But in the actual operation, we still find some failure. So whether the overall listing Through additional orientation can be a cure for corporate governance is still worth probing into.Because of the overall listing through additional orientation is a special product of the Chinese capital market, we haven’t found the foreign literature about this. Because of this special model belongs to the part of mergers and acquisitions. We may find the researchers had different views on M&A performance. There are not many researches on the overall listing through targeted additional limited by sample size in our country. In summary, there is no unified view to the good ability of the overall listing through additional orientation on solving corporate governance at present. This paper chooses the company overall listed through the way of private placement in2006and2009to make sure the majority shareholder are tunneling or supporting. After the study, we arrived at the conclusion, which is that the overall listing through the way of private placement haven’t successfully solve the longstanding problem of corporate governance, the biggest shareholder are still tunneling.This article consists of five large plates; concrete frame structure is as follows:Chapter1, Introduction. This section sets out the background and significance of this study, outlines the research methodology and content of this article, pointed out the innovations.Chapter2, Literature review. This section summarized the research results at home and abroad, and made the overall evaluation,Chapter3, Concept definition of overall listing through additional orientation and basic theory. This section defines the overall listing through additional orientation, and expounds its basic theory, such as efficiency theory, the theory of transaction costs, economies of scale theory, control theory and information hypothesis. Then explain the financial indexes measuring corporate performance.Chapter4.Empirical study design of the overall listing through additional orientation. This section details the data, indicators and assumptions of the empirical study design. Choosing the company overall listed through the way of private placement in2006and2009in order to make sure that the majority shareholder are tunneling or supporting.Chapter5.Positive analysis of the overall listing through additional orientation. First measuring short-term performance by comparing whether the earnings per share index had reached the expected value in that very year. Then by principal component analysis and an empirical test from different angles, to determine if the company performance have been promoted signally since overall listed through the way of private placement.Chapter6, conclusions and recommendations. After the above study, we found that the company performance haven’t been promoted signally since overall listed through the way of private placement. This pattern hasn’t stopped the majority shareholders tunneling successfully. The government and related supervision department should have an objective view on this capital operation mode. The listed company must bite off as much as he can either.