Analysis Of Cases Where Major Shareholders Illegally Occupy Of Tianma

The problem of major shareholders' illegal occupy of listed company funds has always been a prominent problem that plagued China's capital market.Especially in recent years,The ways in which major shareholders embezzle the funds of listed companies are becoming more diverse and complicated,with higher concealment,and it is more difficult to find.In some cases of occupation,there are even situations in which the amount of occupation is large and intertwined with listed companies' violations of guarantees and information disclosure violations,the market impact is extremely bad.The illegal use of funds by major shareholders not only violated the rights and interests of small and medium shareholders,but also caused serious damage to the growth and development of listed companies.Therefore,how to take effective measures to eradicate the problem of capital occupation of major shareholders and protect the interests of investors is an urgent problem that needs to be solved.At present,domestic scholars' analysis of the illegal use of funds by major shareholders is mainly focused on the empirical analysis and theoretical research of the main board market,which is rarely presented in the form of case analysis.In this paper,Tianma Bearing Group Limited company,which is listed in Small and Medium Board,is selected as a case study.The major shareholders of this case occupy funds illegally in various forms,various means and huge amount,which is a typical example of major shareholders occupying funds illegally in the capital market.In this paper,through the study of Tianma's major shareholders' illegal occupation of funds,the way to achieve the cause of misappropriation and the resulting economic consequences,we put forward suggestions to prevent the major shareholders' illegal occupation of funds.This paper divided into the following four parts:The first part includes introduction and theoretical overview.Firstly,it introduces the background and significance of this topic,through the review of relevant literature at home and abroad,constructs the research ideas and methods of this paper,and combs out the overall research framework of this paper.secondly,it defines the related concepts of major shareholders' illegal occupation of funds;next,it expounds the causes of major shareholders' illegal occupation of funds,the ways of major shareholders' illegal occupation of funds and the consequences of major shareholders' illegal occupation of funds;Finally,it summarizes the theories related to the major shareholder's fund occupation.The second introduces the case of major shareholders of Tianma shares illegally occupying funds.This section describes in detail the illegal occupying funds by Tianma's major shareholders,including a review of Tianma's major shareholders' capital occupation incidents,specific means of capital occupation,and the amount of capital occupation.The third part is a case analysis of Tianma's major shareholders' illegal occupation of funds.First of all,from the internal and external factors in-depth analysis of Tianma's major shareholders' illegal occupation of funds Then,it analyzes the negative impact of the illegal occupation of funds by the major shareholders of Tianma on the listed company itself and the company's stakeholders,and exposes the harm of the illegal occupation of funds by the major shareholders.At the same time,the event research method and Z-Score model were used to analyze the impact of the major shareholder's illegal capital occupation on the company's short-term market performance and financial risk.In this section,through case analysis,it is believed that the main reasons for the capital occupation of Tianma's major shareholders include: High pledge rate of major shareholders' equity;The governance mechanism of corporation is defective;The internal control of corporation failed;The cost of major shareholders' illegal occupation of funds is too low.The consequences of major shareholders' illegal occupation of funds include:The stock price of listed companies fell and the short-term market performance declined;The company's financial risk increases sharply and it is in financial difficulties;The departure of directors and supervisors of the company led to increased business risks;the company was sued,and the risk of delisting increased;the negative news increased and the company's image was damaged;the funds of small and medium shareholders were locked up;and the interests of employees were damaged.Finally,the conclusion is reached through the analysis of the case where Tianma's major shareholder illegally occupied funds.The conclusions include the following: Related party transaction is the usual means of illegal occupation by major shareholders;Imperfect governance mechanism provides conditions for major shareholders to illegally occupy funds;The illegal appropriation of funds by major shareholders has seriously harmed the interests of the company and its stakeholders.At the same time,in order to prevent major shareholders from illegally occupying funds,the following suggestions are put forward: Improve corporate governance mechanism and implement internal control procedures strictly;Strengthen the supervision and punishment of the securities market and increase the cost of violations by major shareholders;Improve the shareholder litigation system and improve the protection mechanism for small and medium investors.