Asset Injection and the Equilibrium of Shareholder´s Interests: A Study Based on China´s Stock Market

This paper constructs a model to analyze the equilibrium of shareholder´s interests in the non-public offerings and asset injection, and takes empirical test of 50 listed companies in China´s stock market. The model shows whether non-public offering price equals intrinsic value is the critical condition to realize the equilibrium of shareholders´ interests. However, the empirical results reveal there is not a close relationship between the two, and exist significant difference in statistics. The average offering price is notably lower than the intrinsic value, which shows major shareholders are likely to seize the interests of minor shareholders. Moreover, the phenomenon is more common in good companies than in bad companies.