Study On Relationship Of Large Shareholder Control And Corporate Investment

Corporate governance as a series of mechanism arrangement that solve separation problem of ownership and control of modern company, its purpose is for guaranteeing that investors receive rational investment repayment. The control right to the company of large shareholder changes with change of its shareholding. In the company with disperse ownership, the control right of the company is mastered by the manager, the shareholding of large shareholder in the company is low; When in the company whose ownership is more concentrate, the control right of the company begins to master together for large shareholder and administrator, large shareholder has the higher shareholding; After large shareholder controls the most of shareholding of the company, the control right of the company is mastered by large shareholder. Because of the changes of large shareholder control right, the way they realize their maximized interests is change too, and enterprise investment is also changes.This dissertation is from the point of large shareholder, discussing the relation of large shareholder's shareholding and investment of enterprise under large shareholder control, open out the mechanism of large shareholder aggrieves atomic shareholder and creditor through investment, and the mechanism of large shareholder chose investment to realize maximum of enterprise value and reduce agency cost of large shareholder. Corporate investment is the representation of the will of large shareholder under the control of large shareholder. The large shareholder has the benefits of two respects which is depend on his ownership: Firstly, the pursuit of sharing benefit form his ownership, namely the pursuit of maximum of enterprise value; Secondly, the pursuit of the private benefit form his control right. On the sharing benefit of large shareholder, because of the agent problem between large shareholder and manager, manager would care more about the market value of the firm and chose the project depend on it through his complement contract, but not the project correlating with true value of enterprises, this causes to the harm of large shareholder's interests and distortion of investment, thus establish the relation between large shareholder and investment. On the private benefit of large shareholder, he may occupy interests of atomic shareholder and creditor through the means of assets shifting or substitution of assets, this article analyzes the relation between large shareholder control right and enterprise investment from these two aspects. Base on theoretic analyses, this dissertation test the result of the theory through the way of empirical study by using the data of ownership structure and management of china share Company, and to get the motive of the investment of the company under large shareholder control, and analyze the inherent logic foundation of the enterprise investment. Finally, this text proceeds from realistic point, put forward the countermeasure and suggestion to the company of our country about ownership structure and corporate governance.