High Remuneration,Complex Transaction And Type Ⅱ Agency Problem

In recent years,the phenomenon of stars’ sky high price film remuneration is common,and the film remuneration of domestic first-line stars is even as high as more than 50% of the total investment of film and television dramas.The phenomenon of high film pay of stars has increasingly aroused the common concern of the whole society.Since 2018,SARFT has restricted the proportion of artists’ film remuneration in the total investment,and major video websites and film and television production companies have also begun to jointly boycott artists’ sky high film remuneration.In this context,artist Zheng Shuang was revealed that he obtained 160 million film remuneration from Beijing Culture in the form of Yin-Yang contract and was suspected of tax evasion.At the same time,the real name of the former vice chairman of Beijing Culture reported that the current chairman and individual directors were suspected of fraudulent issuance of bonds and illegal disclosure.Given the distribution income of film and television works,the higher the film remuneration,the lower the profit of the producer,which obviously damages the interests of all shareholders and runs counter to the assumption of economic man.What is the mystery behind the high film pay of Beijing culture? What is the connection with the real name report of the former vice chairman?The case study of this paper finds that,first,behind the high film pay and a series of complex transactions,there may be the behavior of management fake craftsmen and film and television drama projects to grab benefits from listed companies;Second,in addition to the high film pay and the interest transmission behind complex transactions,St beiwen also has some means suspected of infringing on the interests of minority shareholders,such as:(1)St beiwen acquired century partners,Zhejiang Xinghe and other companies at a high premium and confirmed the goodwill.After the target company Century partners completed the performance commitment,the performance began to decline sharply,and Beijing Culture accrued a huge impairment of goodwill,resulting in a loss of net profit in 2019,which was finally sold at a low price.(2)St beiwen acquired a subsidiary at a high premium,with human resources and film and television assets highly recognized by the industry,and the subsidiary completed its performance commitment during the gambling period.These factors have pushed up the stock price.Moreover,the private placement in the process of M &A leads to the fact that the enterprise has no actual controller,and the voting rights of senior executives are second only to the first two institutional shareholders.Since then,institutional shareholders and management have continuously reduced their holdings at high prices,and even become the company with the largest continuous reduction of a shares in 2019,which has led to the decline of the company’s stock price,the profits of cashers,and the losses of minority shareholders due to information asymmetry and lag;(3)Carry out financial fraud,reduce the project income by retroactively adjusting the 2018 financial statements,and make a large amount of impairment for receivables and prepayments,while the debtor of receivables is suspected to be a related party.Third,the behavior of transferring shareholders’ equity endangers the performance of the company,and these behaviors of transferring shareholders’ equity endanger the performance of the company;Fourth,after the sky high price film pay event,the car of St beiwen stock is significantly negative in the short term and BHAR is significantly negative in the long term,which shows that the tomorrow price film pay event has brought negative performance to the company.The above-mentioned value destruction behaviors of the company have damaged the value of the company and endangered the interests of shareholders in the short and long term.These evidences show that the second kind of principal-agent problem exists.Our suggestions are: first,investors should identify and avoid risks.When observing the annual reports of listed film and television companies,they should not only pay attention to quantitative indicators,but also pay attention to qualitative indicators.For the announced investment project of the company’s film and television projects,it is necessary to conduct rational analysis and consider policy factors,market-oriented factors,etc;Second,regulators should innovate supervision means,improve equity transparency supervision,conduct transparent supervision on hidden and difficult to detect "behind the scenes" major shareholders,supervise film and television projects,strengthen the sensitivity of abnormal signals of film and television projects,learn from cases and lessons,summarize relevant law enforcement experience,and then quickly and accurately identify and respond to abnormal signals of listed companies hollowed out by major shareholders and executives,Finally formulate specific express provisions.