Research On The Tunneling Behavior Of Persons Acting In Concert From Listed Private Enterprises

Nowadays,as a pillar of Chinese economy,private enterprises are gradually on the right track in the process of continuous development and improvement.However,due to its internal corporate governance,there are still many shortcomings.At the same time,the number of private enterprises in the capital market has increased significantly.Under the circumstance of limited regulatory resources,it is difficult to achieve comprehensive supervision of all private listed enterprises,which provides convenience for tunneling.Faced with the continuous introduction of relevant policies to improve the external supervision system,the actual controllers began to take more hidden ways to seize benefits.As a kind of concealed shareholder relationship,persons acting in concert aggravates the second kind of agency problem to some extent,making hollowing out more difficult to detect.Therefore,more attention should be paid to the research and supervision of private listed companies and those persons acting in concert.Because of the above background,this thesis uses persons acting in concert as the starting point,based on the information asymmetry theory,control rights theory,and collusion theory,and selects the most typical private listed companies in recent years for research.Through the research,it is found that the persons acting in concert conspired to obtain the private benefits of excessive control,and drained the funds by illegal occupation,illegal guarantee and illegal pledge of equity.The reasons for the implementation of the tunneling behavior are: First,there is an association among the shareholders of the company,and they can obtain the actual control right of the company by colluding to form persons acting in concert,while the other shareholders' shares are scattered,which cannot form a check and balance role.Second,the concerted actors control the board of directors and the board of supervisors,resulting in failure of the internal governance mechanism.Third,insufficient supervision of the external governance mechanism,such as flaws in the information disclosure mechanism and the failure of the functions of external audit institutions.The tunneling behavior of persons acting in concert caused the value of the company to decrease and the business performance to decline significantly.Finally,the company was delisted from the stock market,which had a very serious impact on minority shareholders and disrupted the normal order of the capital market.