Study On The Tunneling Behavior Of Major Shareholders Of Gosun Holding

With the development of Chinese capital market,more and more companies choose to go public in order to realize enterprise value.However,due to the concentration of equity in most listed companies in China and the defects in the internal governance structure,the phenomenon of "tunneling" of listed companies by major shareholders occurs from time to time,which seriously damages the rights and interests of minority shareholders.Since April 2005,the relevant regulatory authorities have successively introduced a series of regulatory measures,laws and regulations to prevent major shareholders from encroaching on the interests of listed companies,and strengthened the protection of minority shareholders.However,due to the relatively light punishment of violation in China,the tunneling behavior of major shareholders cannot be truly restrained,which leads to the increasingly serious agency conflict between major shareholders and minority shareholders,thus affecting the healthy development of the capital market.Therefore,it is of great theoretical and practical significance to analyze the ways,motives,causes and influences of major shareholders' tunneling behavior by means of case study,so as to prevent the occurrence of major shareholders' tunneling behavior.Based on the principal-agent theory,information asymmetry theory and private benefits of control theory,this paper takes gosun holding as the case company,and specifically analyzes the ways,motivations,reasons and influences of the tunneling behavior of major shareholders in gosun holding.First of all,the major ways of tunneling by the major shareholders of gosun holding are capital occupation and illegal guarantee,which are mainly motivated by providing construction funds for related parties,solving the debt crisis and grabbing private benefits of control.Secondly,the reasons leading to the tunneling behavior of the major shareholders of gosun holding are mainly the unreasonable shareholding structure and the internal governance structure of the company,as well as the loopholes in the external regulatory system.In addition,the tunneling behavior of the major shareholders of gosun holding mainly caused damage to the corporate image,the deterioration of the financial situation,the impact on the business development of the enterprise and the infringement of the rights and interests of the minority shareholders.Finally,this paper proposes corresponding policy Suggestions for the deficiencies of shareholding structure,internal governance structure and external supervision,hoping to prevent the tunneling behavior of major shareholders to some extent.