Case Study On The Benefits Expropriation Of The Major Shareholders Of Jinlongjidian

Since the reform and opening up,China has changed from planned economy to market economy,which is a new market economy country.Compared with foreign countries,private enterprises in China have a common one share ownership structure.Although there is some improvement after the reform of non tradable shares,under this background,the behavior of large shareholders encroaching on external investors' assets by multiple means still occurs many times.In recent years,major shareholders of baoqianli,LETV and Zangger holdings have invaded the company's interests,which has seriously affected the normal order of the capital market.The reason is that the internal control system of listed companies is defective,the punishment of this kind of behavior is weak and the small and medium-sized shareholders have not established the risk identification framework of encroachment.In order to deal with the continuous violations,our country has been improving the standard requirements for the basic norms of internal control of enterprises,as well as paying attention to the norms of laws and regulations.Therefore,it is of practical significance to analyze the common means,motivation,mechanism and economic consequences of the usurpation of the interests of major shareholders at home and abroad.In this paper,the case of Jinlong mechanical and electrical major shareholder's interest encroachment is taken as the research object.The controlling shareholder pledges a large amount of equity to support its large amount of cash foreign investment dominated by absolute power.In this process,it releases good news,pulls up the share price to cooperate with its strong reduction.In addition,there are also acts of illegal guarantee without audit.Finally,it brings serious business crisis to the company,which leads to years of losses and the dilemma of shell protection.Therefore,it is necessary to review and reflect on this case.Is subjective motivation,internal control failure and low external supervision the cause of behavior implementation? How will small and medium-sized shareholders protect their own interests,identify and infer whether there is the fraud in the company?This article first introduces the research background and research significance,and expounds the research ideas and innovation of the article,and combs the research status of domestic and foreign scholars and scholars in the behavior of majority shareholder's interestembezzlement,and combs the theoretical basis of the article.The second chapter introduces the basic operation of Jinlong Electromechanical,and sorts out the encroachment process in chronological order.The third chapter first uses fraud risk factor theory to analyze the causes of the implementation of the behavior,and secondly,identifies and qualitatively analyzes the embezzlement performance by establishing a recognition idea that the business behavior and financial performance match each other,and then uses the principal-agent theory to transmit the effect of the embezzlement means to the consequences Carry out an analysis,and finally study the extent of the embezzlement behavior on the company's operations and the minority shareholders.Chapter IV gives some suggestions on improving the internal control,external supervision and protection of small and medium shareholders of listed companies.In the analysis process,we try to find out the mismatch between business behavior and financial indicators,and provide a theoretical basis for small and medium shareholders to construct an identification framework of embezzlement risks.