Private Listed Companies In Our Country Under The Pyramid Shareholding Structure Benefit Expropriation Problem Research

Since China’s reform and opening up, China’s private enterprises in China’s economic development, play an important role, more and more private listed companies choose to enter the capital market. China’s private listed company’s equity is relatively concentrated, and the pyramid shareholding structure in the most common, and controlling shareholders generally exists in the listed company. Controlling shareholders tend to its own interests, would choose to encroach on the interests of small shareholders, related party transactions is an important means of controlling shareholders encroach on interest, thus gives rise to conflicts of interest between controlling shareholders and minority shareholders.This paper can be used a combination of theory and case study, the theoretical aspect, mainly according to the characteristics of the pyramid shareholding structure of private enterprises, the equity structure under the benefit expropriation, and the study interest encroach on the economic consequences and influence. Case, this article selects the pyramid ownership structure of listed companies under N, N company, for example, the basic situation, the influence of the governance structure of benefit expropriation behavior and interests encroach on the way and embezzlement affects N company financial performance comprehensive comparison and analysis.In this article, through the analysis of N company, draw, ultimate control person benefit expropriation by pyramid equity structure of listed companies, will have adverse impact on the company’s business, the company’s business performance decline, interests is damaged, the interests of small shareholders have also been implicated and occupation, is not conducive to the economic development of China, and the stability of the capital market. For this kind of behavior, the article finally through self guard, perfecting the corporate governance mechanism of small shareholders, regulators to protect against it, improve the system of the rule of law of protecting minority shareholders’ rights, occupy four Suggestions are given on how to prevent interests.