A Study On The Tunneling Behavior Of Major Shareholders Based On The Perspective Of Corporate Governance

In recent years,there have been numerous incidents of "hollowing out" by major shareholders in China’s capital market,which has not only damaged the image of enterprises,but also harmed the economic interests of many investors and had a bad impact on the market economy.On May 13,2019,the China Securities Regulatory Commission(CSRC)issued a Notice of Prior Administrative Penalty against Techcent Environment,which found that Techcent Environment’s major shareholder was suspected of illegal interest misappropriation and the company’s internal governance was out of control.The occurrence of hollowing out events often reflects the failure of corporate governance.In order to help enterprises develop scientific and effective governance structures and promote the healthy development of the capital market,this paper takes Techcent Environment as the research object and conducts a specific study on the hollowing out behavior of major shareholders based on the perspective of corporate governance.The paper mainly adopts literature research method,case study method and combination of qualitative and quantitative analysis method,and combines principalagent theory,information asymmetry theory,control privity theory and corporate governance theory to conduct an in-depth study on the emptying incident of Techcent Environment’s major shareholder.Firstly,this paper systematically reviews the shortselling incident of Techcent Environment’s major shareholders and exposes the motives and means of Techcent Environment’s major shareholders’ short-selling behaviors;then,based on the perspective of corporate governance,the causes and serious consequences of Techcent Environment’s major shareholders’ short-selling behaviors are analyzed from two levels,internal governance and external governance,respectively,based on the financial data of Techcent Environment from 2014 to 2019;finally,based on the causes of the short-selling behavior of Techcent Environment’s major shareholder,targeted suggestions are made on how the company can prevent the short-selling behavior of major shareholders,and conclusions are drawn from the study.Through the study of the emptying behavior of major shareholder in Techcent Environment,the following conclusions can be drawn: improving the internal and external corporate governance structure can effectively improve the governance level of listed companies,thus curbing the emptying behavior of major shareholders at the level of corporate governance.Therefore,enterprises should design and implement a scientific and reasonable corporate governance structure to actively prevent the shortselling behavior of major shareholders,increase corporate value,and thus protect the rights and interests of small and medium shareholders.