Research On The Motivation And Economic Consequences Of Interest Expropriation Of The Major Shareholders Of Zhen Xing Biochemical Co

The interests expropriation of major shareholders of listed companies has always been one of the research hotspots of corporate governance.The punishment of all kinds of illegal behaviors by securities law and various regulatory rules and regulations is becoming increasingly strict.The behavior of directly or indirectly encroachment on assets of listed companies and damaging the interests of the company and the legitimate rights and interests of minority shareholders has become the "red line" of supervision.However,due to the late start of the capital market,the weak foundation of relevant systems and other reasons,The phenomenon of tunneling by major shareholders of listed companies still exists.In this objective environment,only by making a more comprehensive attribution to the main behavior of this phenomenon can we more specifically control the chaos of tunneling by major shareholders.Taking Zhen Xing Biochemical under the control of Zhen Xing Group as an example,this article summarizes the process from the implementation of tunneling to the exposure of tunneling by the major shareholders of Zhen Xing Biochemical in chronological order,and comprehensively summarizes the ways of expropriation on the interests of major shareholders.Then,under the analytical framework of the fraud GONE theory,supported by PBC theory,information asymmetry theory and principal-agent theory,this article deeply analyzes the motivation of the interest expropriation of Zhen Xing Biochemical from the aspects of shareholding structure,internal governance,major shareholders’ own predicament and external regulatory environment.Then,this article selects the financial data of Zhen Xing Biochemical from2007 to 2017 and the average data of 44 A-share enterprises in the pharmaceutical and biological(biological products)sector to conduct vertical trend analysis and horizontal industry comparison;At the same time,the event analysis method is used to test the response of the stock market to tunneling behavior through the accumulated excess return rate.The conclusions of this article are as follows:(1)under the circumstances of centralized ownership structure,ineffective supervision of directors and supervisors,insufficient external supervision and their own financial difficulties,major shareholders have the motivation to carry out the tunneling;(2)The tunneling behavior of major shareholders worsens the capital structure of listed companies,makes the company face huge financial pressure,lowers the operating efficiency and profitability of the company,restricts the development of the company,and also leads to the infringement of the interests of minority shareholders.Finally,in order to avoid the adverse consequences caused by the encroachment of the interests of major shareholders,this article puts forward some preventive suggestions,such as optimize equity structure,establishing the reputation supervision mechanism of major shareholders,improving the company’s internal control,strengthening the supervision of new media public opinion and so on.