Research On The Impact Of Large Shareholders’ Tunnelling Of Listed Companies

In recent years,the methods used by major shareholders to hollow out listed companies have become diversified and complicated.This increases the difficulty of supervision and is more harmful to the capital market.Some listed company executives have insufficient governance capabilities,and the company’s shareholding structure ratio is unreasonable.The emergence of these special circumstances has greatly aggravated the equity agency contradiction between major shareholders and SME shareholders.At present,my country’s legal mechanism for effectively restraining the illegal emptying of assets by the company’s major shareholders is not mature enough.It often happens that major shareholders emptied listed companies,and this kind of chaos has seriously disrupted the order of the capital market.I selected *ST Tianma as the case company based on reading related literature.*ST Tianma’s major shareholder Xu Maodong used complicated and diverse methods to hollow out listed companies,and the amount was huge.This is a typical case of hollowing out in the capital market.This paper studies the methods used by *ST Tianma’s major shareholder Xu Maodong to empty listed companies,mainly through hidden connected transactions,unaccounted loans,and prepaid accounts lacking commercial reasons.Study the reasons why major shareholders obtain profits and the adverse effects on company performance,and put forward targeted suggestions from the internal governance structure,laws and regulations,and external supervision.And concluded that:(1)Major shareholders used the company’s funds for purposes other than business operations,related transactions,and illegal borrowings to hollow out listed companies.(2)*ST Tianma’s hollowing-out is caused by defects in the corporate governance structure,excessively high pledge rate of major shareholders,weak awareness of rights protection by small and medium shareholders,low illegal costs,lack of effective regulatory mechanisms,etc.(3)The hollowing behavior has a greater impact on the company’s performance and the stakeholders of the listed company.Through the analysis of the case of *ST Tianma’s major shareholders hollowing out listed companies,We can take measures from somewhere:(1)we Can make the enterprise organization more perfect.(2)Raise the threshold for appointment of senior managers.(3)Introduce institutional investors to optimize the company’s shareholding structure.(4)Encourage media supervision,prompt companies to correct their illegal behaviors,and improve corporate governance structure.(5)Liberalize and improve the short-selling mechanism,and use natural "supervisors" in the capital market to restrain major shareholders’ tunneling behavior.(6)Improve the litigation protection system for small and medium shareholders...