Research On An Analysis Of The Mechanism Of Large Shareholders Illegal Behavior In Listed Companies

China’s securities market has gone through 30 years since its establishment,and the total number of listed a shares has reached 3831.IPO,as a main form of corporate financing,not only provides financing channels for companies,but also provides investors with investment options.With the rapid development of the securities market,along with the rapid growth of the number of listed companies,many companies have achieved rapid growth of assets through listing,and many large shareholders of listed companies have also achieved rapid growth of personal wealth through listing.However,the company’s listing brings benefits to the major shareholders,at the same time,it also causes some major shareholders of listed companies to violate the rules through their shares,control rights and decision-making rights,which harms the investors and small and medium shareholders,"hollowing out" behavior and seriously damages the rights and interests of small and medium shareholders.Moreover,this phenomenon shows a trend of continuous growth,which is worth the attention of the market and regulators.It is because of this phenomenon that the investment environment of the securities market has been greatly impacted,which makes investors lose confidence in the future development of the securities market,even some worry.Based on the perspective of equity structure and Conrad case,this paper analyzes the formation mechanism of the major shareholders’ illegal behavior of Listed Companies in multiple dimensions.This paper focuses on the listed companies with characteristics,wide influence and various ways of illegal behavior as a case,taking the case company as a breakthrough,analyzing the illegal ways,motivation and formation mechanism of the listed companies at this stage.From the case analysis as a breakthrough,combined with theoretical analysis,factor analysis to explore the internal and external formation factors of listed companies’ violations.It can make small and medium-sized investors have a new way of reference when choosing the investment target,so as to effectively avoid the phenomenon of "stepping on thunder",so as to protect their own rights and interests by selecting high-quality listed companies.At the same time,regulatory agencies and listed companies can implement targeted actions to standardize and optimize the asset quality and equity structure of listed companies,so as to reduce the possibility of major shareholders’ violations.The traditional analysis of listed companies’ illegal behavior,the scholars of "hollowing out " behavior mainly focus on empirical analysis,through collecting a large number of listed companies’ data,so as to find the common characteristics of listed companies with illegal behavior.However,most of the violations of listed companies are caused indirectly by the wishes of major shareholders or even directly led by major shareholders,and the formation mechanism of the violations has its own unique characteristics of the listed companies.Therefore,in this paper,the occurrence of serious violations in the current stage seriously damages the rights and interests of small and medium shareholders and investors New(002450)" as an example,through the path analysis of major shareholders’ illegal behavior,we find the root cause of low cost and simple operation of major shareholders’ illegal behavior caused by the defect of equity structure.This paper mainly analyzes the path of major shareholder’s illegal behavior in kangdexin,and investigates the path of major shareholder’s illegal behavior under the actual situation,so as to explore the way of restraining major shareholder’s illegal behavior from the path.Kangdexin’s major shareholders control the board of directors and the general meeting of shareholders and weaken the corporate governance structure to implement illegal guarantee,illegal occupation of funds,financial fraud and other illegal acts.Finally,the small and medium-sized shareholders are hollowed out until the bond defaults,facing delisting,which seriously damages the rights and interests of small and medium-sized shareholders.The formation mechanism of the violation includes the separation of control right and cash flow right,the high concentration of equity,the loopholes in corporate governance structure,the lack of checks and balances between equity,and the failure of intermediary supervision.Through the analysis of formation mechanism,we can find some problems of listed companies,such as the lack of equity restriction mechanism,the failure of shareholders’ meeting and the lack of supervision.Finally,through the case study of kangdexin,we can know that the lack of internal governance mechanism,the defect of equity structure,and the decline of information disclosure quality will directly reduce the cost of large shareholders’ illegal behavior,thus promoting large shareholders to implement illegal behavior.