How Does The Family Financial Crisis Evolve Into "Tunneling" Of Listed Companies

In recent years,with the continuous development of economy,the number of family listed companies and their proportion in listed companies are increasing year by year.Compared with ordinary private listed companies,family listed companies have significant family characteristics.Family members hold positions at the corporate governance level and management level based on the complex kinship and special principal-agent relationship between families and exert control over listed companies.The family based governance model can make full use of the advantages that the family social capital does not have to obtain a single company,but the corresponding is that in the process of the rapid development of the family,too centralized family control is more likely to lead the family to adopt radical expansion strategy and generate huge capital demand,which makes the financial risk surge,and ultimately leads to the occurrence of the family financial crisis.Focusing on the particularity of family governance,this paper takes family financial crisis as the starting point to study the occurrence and Realization Mechanism of family's "tunneling" of listed companies under the background of financial crisis,focusing on how financial crisis becomes the deep driving factor of family's "tunneling" of listed companies,so as to provide a new way for family's "tunneling" of listed companies Mechanism explanation.At the same time,it focuses on the analysis of the basic conditions for the occurrence of "tunneling" behavior and the effectiveness of supervision and balance of the family "tunneling" behavior,and on this basis,it discusses the prevention mechanism of "tunneling" in listed companies.The conclusion shows that the large amount of capital demand caused by the financial crisis is an important driving factor for the family to "tunnel" the listed companies.The family's internal financing preference and social capital network relationship have obvious risk sharing characteristics.Family businesses form a relationship network with the family as the link,financing and providing guarantee for each other,which leads to the family financial crisis spreading to all the enterprises controlled by the family through the family relationship network,and finally leads the family to "tunnel" the listed companies in order to alleviate the financial crisis.Further research finds that the family's control right through equity and social capital is the basic condition for the family to "tunnel" the listed companies.The family controls the listed companies through a complex control chain.Based on the dominant position of controlling shares and the interference of family social capital in the normal operation mechanism of the board of directors,the seemingly reasonable democratic decision-making and governance of the board of directors is dominated by the will of the family,which provides shelter for "tunneling".At the same time,the imperfect restriction mechanism is an important reason for the family's "tunneling".The family conceals the key information of the listed company by using the control advantage of the listed company.Because of the information asymmetry,it is difficult for other investors outside the family to know the real operating situation of the listed company,which makes it difficult for other investors to rely on their own strength for supervision and restriction.Meanwhile,due to the relatively high equity ratio of the family and the long-term control of the board of directors,it is difficult for small and medium shareholders to effectively restrict the family's "tunneling" behavior.Based on the particularity of family governance,this paper systematically studies the "tunneling" of family to listed companies under the financial crisis.The conclusion of the study is not only conducive to guiding family enterprises to establish a correct risk prevention and control system,but also provides a reference for the implementation of a reasonable and effective mechanism of checks and balances,and also provides a corresponding basis for regulators to further improve the protective measures of "tunnel excavation" and issue a reasonable and effective supervision mechanism.