Embezzlement of Principal Shareholders Based on a Case Study of Xiancheng Mining Company

摘要

The consequences and possible reasons for embezzlement of principal shareholders based on Xiancheng mining group were analyzed. According to data from Xiancheng mining group, existing problems of external governance and internal governance causing embezzlement of principal shareholders were pointed out. The study indicates that corporate governance could help to significantly improve internal and external governance structures and reduce tunneling. Principal shareholders should be committed to make better development of the company and improve the company's competitiveness to obtain better prospects. Furthermore, economic reforms like the attempts to improve corporate governance and to limit the influence of the state in publicly listed companies are recommended.