The Study Of Benefit Expropriation Of Controlling Shareholders In Listed Companies

Jensen and Meckling published the article < The Cost of Capital, Corporation Finance and the Theory of Investment > and put forward the MM theory in 1958. From then on, the search of capital structure was very popular. So the theory of agency came forth in 1976. But the base of the theory of agency is that the structure of ownership is dispersed. However, a lot of studies have showed that the stock structures of majority country are centralizing at recently.The centralization of ownership is very help to reduce the cost of agency and the other shareholders also can get benefit from that. However, the majority shareholder can manage the right of control, the nature force them usurp on the right of the other shareholders. Namely, the majority shareholders can not only bear the supervised responsibility, but use all kinds of ways to usurp on the right of the other shareholders. So the empirical researches also indicate that the conflict between the majority shareholders and minority shareholders is very severity.