Case Study Of Conde New Related-party Transaction Tunnel Behavior

In China’s listed companies,equity concentration is a common phenomenon.This phenomenon will result in the failure of the regulators to play their due regulatory functions,which will infringe the interests of the investors,creditors and small and medium-sized shareholders of the enterprise,and the information they invest is not conducive to the further development of China’s economic market.In such an atmosphere,the controlling shareholders make use of their own advantages to control the operation decision of the listed company,so as to carry out the tunneling behavior,hollowing out the listed company,which hinders the development of the listed company,even the stock is "ST".In the past two years,Kangde new composite material Group Co.,Ltd.,which has attracted much attention from the market,has been publicly condemned and punished by the CSRC due to its long-term illegal connected transactions,and has been reduced from a hundred billion "white horse stock" to a listed company whose stock has been "St".Therefore,how to effectively regulate related party transactions and avoid the tunneling of listed companies by controlling shareholders is worth pondering and discussing.This paper takes kangdexin as the research object,analyzes kangdexin’s connected transaction tunnel behavior,summarizes the experience and lessons,and puts forward some targeted suggestions.At the beginning of this paper,the relevant literature at home and abroad is sorted out,and the theory of connected transaction and tunnel behavior is elaborated,which lays a theoretical foundation for the following case analysis.Secondly,in the case analysis part,it analyzes the related party transaction tunnel behavior of kangdexin from three aspects: motivation,implementation means and economic consequences.Finally,on the basis of the above analysis and research,the conclusions and Enlightenment related to the case are drawn,which provide useful reference for other similar enterprises to establish relevant systems to regulate related transactions and strengthen the protection awareness of the legitimate interests of small and medium-sized shareholders.