Research On The Tunneling Behavior Of Major Shareholder Based On The Case Of Protruly

China's economy is developing rapidly with remarkable innovation vitality,deepening reform and further promoting economic development.Private economy has made outstanding contributions to China's economic development.It is an important part of China's economy and an indispensable force to boost economic development.General secretary xi pointed out in the private enterprise forum that the private economy has become an inherent element of China's economic system,and the private economy should be strengthened.But private enterprises also have many problems,including the policy implementation is not in place and the enterprise system is not sound.A considerable number of private enterprises enter the securities market to increase the value of enterprises.However,due to the imperfect system,inadequate supervision and the self-seeking behavior of major shareholders,tunneling by major shareholders is common,eroding the interests of small and medium-sized investors and creditors and affecting investors' confidence in the market.This paper chooses Baoqianli as a case study to analyze the motivation,mode and problems of tunneling behavior of major shareholders,and uses CRIME five-factor model to analyze.In the past,CRIME five-factor model was used to analyze financial fraud cases.This model framework is also applicable to large shareholders' tunneling behavior,because it provides the perspective of case analysis from the actor,motivation,consequences and other aspects.This paper consists of five parts.The first part is an introduction,describing the research background,research significance,research content and innovation.The second part is to introduce and sort out the theoretical basis and literature review,summarize the motivation and influence of scholars to study the tunneling behavior of major shareholders,and so on,which is the basis of the analysis of this paper,throughout the full text.The third part is the case introduction,the means of tunneling behavior of Baoqianli and major shareholders.The fourth part uses CRIME five-factor model to conduct a comprehensive analysis,including the motivation of large shareholders' tunneling behavior,internal and external supervision,final results,etc.,to analyze the impact of tunneling behavior.The summary mainly includes two major problems :(1)one dominant share,unreasonable ownership structure and corporate governance defects,the absence of internal supervision institutions and mechanisms,and the failure to implement decision-making procedures,examination and approval,and disclosure of major issues,which create favorable conditions for tunneling behavior of major shareholders.(2)the role of external supervision is ineffective,and the punishment for illegal behaviors by law is insufficient.External institutions,such as accounting firms,have not audited the related party transactions of enterprises,the internal control environment is bad,funds are not approved,etc.,and the sponsor institutions have not played a good role in supervision.This is the external factor that causes the tunneling behavior of major shareholders.Therefore,the following Suggestions are put forward :(1)establish diversified equity structure.(2)improve corporate internal governance.(3)improve the information disclosure system.(4)increase punishment for illegal behaviors.(5)external organizations are diligent and responsible.