Research On "Tunneling" Behavior Of Major Stakeholders Of~*ST Antai

With the development of social economy,China's capital market came into being,and many listed companies have been established which have played a significant role in promoting China's economy.However,the major shareholders within the companies who exert influences on the daily operations and policy making enjoy the right to make decisions.By virtue of this advantage,they sometimes discreetly conduct "Tunneling" towards the listed company to complete the transfer of their own interests.Such behavior has tremendously affected the sound development of listed companies and infringed the interests of small and medium investors.In response to the "Tunneling" behavior of major shareholders,the supervision authority has issued a series of regulatory measures.Those measures have played a positive role in internal governance and external supervision and have to a certain extent constrained the"Tunneling" behavior of major shareholders,contributing to the sound development of companies.However,due to the lack of supervision and the inadequate methods,as well as serious governance defects within the enterprise,the "Tunneling" behavior still occurs frequently.According to the data,nearly 10%of the capital loss in China's capital market is caused by the "Tunneling",revealing the tough reality.Therefore,an in-depth analysis of the"Tunneling" behavior of major shareholders is of great significance in promoting the development of the capital market.In the first place is an overview of the background,significance and research content,and the author defines the concept of "major shareholder" and "Tunneling",makes an analysis on their "Tunneling" behavior based on the theory of corporate governance,principal-agent theory and property rights theory,and finally gives a review on the current research status at home and abroad.In the next place,the author reviews the occurrence of*ST Antai's“Tunneling" incident and analyzes the means of that and based on the financial data of*ST Antai in recent years,the author analyzes the impacts and causes of the“Tunneling" behavior of*ST Antai's major shareholder,and finds that such behavior has negatively influenced the normal development and operation of the company and its corporate image.Meanwhile,the monopoly of major shareholders,over-reliant on connected transactions,imperfect corporate governance structure,and inadequate external supervision are rooted in the inadequate behavior of the company.In the last place,the author proposes to optimize the shareholding structure,improve the corporate governance structure,expand the company's business channels,increase the punishment of violations,increase institutional investors' share of shares,and introduce insurance supervision to constrain the major shareholders'“Tunneling" behavior.This paper presents with a combination of theory and cases,conducting an in-depth exploration to the "Tunneling" behavior of*ST Antai's major shareholders.On the one hand,it can enrich related literatures concerning such research;on the other hand,it also enables small and medium-sized investors to more clearly understand the "Tunneling" behavior of major shareholders,so that they can make their decisions more accurate when conducting relevant economic activities.Besides,the author of the paper puts forward respective suggestions for both the company and the supervision authorities,hoping to improve the governance level and offer reference value for external authorities on how to strengthen the supervision of the"Tunneling" behavior of major shareholders.