Author(s)

Jing Wang

Corresponding Author

Jing Wang

Abstract

Although China's securities market has made remarkable achievements in its development scale and development speed since its establishment, the phenomenon of the loss of minority shareholders' equity has repeatedly occurred, resulting in the lack of confidence of the majority of small and medium-sized shareholders in the market and the unstable market. In view of this, this paper first uses agency theory and transaction cost theory to explain the internal and external conditions of minority shareholders' equity damage, and summarizes the research on the protection of minority shareholders' rights at home and abroad. This paper summarizes the essence of corporate governance. The function has deeply analyzed the close relationship between the shareholding structure, the internal governance mechanism of the board of directors, the securities market legal system, the information disclosure system, the securities supervision and other external corporate governance mechanisms and the protection of minority shareholders' rights and interests. By constructing a model of internal and external governance integration of small and medium-sized shareholders' rights protection, this paper separately demonstrates the internal and external governance mechanisms of the company under the combination of internal or external corporate governance mechanisms and internal and external corporate governance mechanisms. The combination helps to improve the protection of minority shareholders' rights.

Keywords

Minority Shareholder Right, Governance Structure, Enterprise Development