From The Perspective Of Internal Control, Research On The Tunneling Behavior Of The Major Shareholders Of ST Qiulin

Since China’s transition from a planned economy to a market economy and its development to date,the capital market has developed rapidly,and the behavior of large shareholder hollowing out has also become a major chronic illness that can not be ignored by listed companies.As an important component of corporate governance,internal control can better prevent hollowing out to protect the rights of small and medium shareholders.However,according to the 2019 Dibo Internal Control White Paper,the internal control index of domestic listed companies shows a year-on-year downward trend.It is manifested that the internal control audit reports of listed companies have been issued with non-standard opinions.Optimistically,it is difficult for listed companies and small and medium shareholders to protect their rights.In summary,intensifying relevant research to improve the internal control quality of listed companies is particularly important to prevent large shareholders from hollowing out.This paper studies the causes of hollowing out of large shareholders and the failure of internal control of enterprises,and puts forward relevant suggestions for improving internal control.This article uses the case analysis method.First,it selects the typical Qiulin Group as the research object,and analyzes the hollowing out methods of major shareholders of Qiulin Group using related transactions,capital occupation,and whitewashing reports.These methods lead to the company’s stock price The serious economic consequences of a sharp decline and the continued negative rate of excess return introduce the fact of hollowing out.Secondly,in the process of inquiry and research by relevant scholars,it has been found that since China ’s mandatory disclosure of internal control information of listed companies,the current internal control system of listed companies often pays more attention to cater to the internal control evaluation system and regulatory requirements of the outside world with the goal-oriented principle as the main principle.Ignore the application of the element-oriented principle in the construction of the internal control system,resulting in its inability to meet the company’s internal management needs.Therefore,based on COSO’s internal control elements,this article selects relevant indicators to build an internal control effectiveness analysis framework,and finds more internal control loopholes in Qiulin Group,that is,it expands the causes of large shareholders’ hollowing out,and also provides a direction for improving the internal control of listed companies.Aiming at the case study of Qiulin Group,this paper concludes that the internal control of Qiulin Group has the problems of internal control environment imbalance,inadequate risk assessment,weak control activities,untrustworthy information communication,and insufficient supervision.There are loopholes at all element levels.Therefore,this article believes that the deficiency of the element-oriented principle in the construction and application of the internal control system of listed companies is precisely an important reason why the internal control of listed companies is not effective and it is difficult to prevent large shareholders from hollowing out.Finally,in conjunction with actual cases,this article suggests that listed companies should improve the existing internal control system by selecting indicators at the factor level according to their own characteristics.This article proposes that listed companies need to start internally from the dimensions of control environment,risk assessment and control activities,establish recommendations that value internal control of the company environment,improve the company ’s risk assessment system,and strengthen implementation;from the perspective of information communication and supervision,propose unified information disclosure Suggestions such as caliber,increasing the supervision of intermediaries and strengthening the internal control accountability mechanism.It is hoped that through the research in this article,the internal control of listed companies will be effectively improved to protect the rights of small and medium investors.