A Study On Capital Appropriation By *ST Jingui's Controlling Shareholders

With the rapid development of the economy,China's securities market has been continuously regulated and matured.However,due to many reasons,such as the general existence of a more centralized shareholding structure of listed companies in China,imperfect corporate governance structure and weak external supervision mechanism,the incidents of capital appropriation by controlling shareholders are frequent.Especially in recent years,the means of capital appropriation by controlling shareholders of listed companies have changed in many ways,gradually showing the characteristics of complication and concealment,making it difficult to supervise the capital appropriation by controlling shareholders.While seriously damaging the company's business development,the capital appropriation by controlling shareholders also threatens the interests of creditors and small and medium shareholders,and weakens the resource allocation function of the securities market.Therefore,it is of great theoretical and practical significance to investigate the motives,reasons and effects of capital appropriation by controlling shareholders in order to control the frequent occurrence of capital appropriation by controlling shareholders.This paper mainly adopts a combination of literature research and case study,focusing on the problem of capital appropriation by controlling shareholders of *ST Jingui.By reading a large amount of relevant literature and summarizing the existing research results,the paper develops from four aspects,namely,the motive and mode of capital appropriation by controlling shareholders,the economic consequences caused and the relationship with corporate governance,and explains the current status of research on capital appropriation by controlling shareholders by domestic and foreign scholars.By applying theories related to principal-agent and gain of control,we describe the means of capital appropriation by the controlling shareholder of *ST Jingui and the embodiment of accounts,analyze the purpose of capital appropriation by the controlling shareholder from the basic situation of *ST Jingui,and further investigate the reasons for the realization of capital appropriation by the controlling shareholder of *ST Jingui,and find that there are mainly internal governance reasons such as the over-concentration of shareholding of the company and the failure of the supervisory board.The study found that there are mainly internal governance reasons such as the concentration of the company's shareholding and the ineffective function of the supervisory board,and external reasons such as the imperfection of relevant laws and regulations and the inadequate audit by accounting firms.The study also analyzes the impact of capital appropriation by controlling shareholders from three aspects: the company,stakeholders and the whole securities market.The research results show that the economic consequences caused by controlling shareholders' capital appropriation are very serious,which will negatively affect the operating condition,financial status and development capability of enterprises,make it difficult to protect the interests of creditors,affect investors' investment confidence and are not conducive to the benign development of the securities market.Therefore,relevant suggestions are targeted from two perspectives of external regulation and internal corporate governance to provide useful references for listed companies to improve their governance level and suppress capital appropriation by controlling shareholders.