Controlling Shareholders, Agency Problem And Corporate Diversification Discounts

Now, diversified corporate have existed as the most general organization. However, diversified corporate finally exposes many faults and things non-coordination the environment as times developing. Corporate diversification is harmful to corporate value from many theories and empirical study. Therefore, it is important to study its reason and build up a set of efficient theory system, either corporate diversification promoting, or corporate theory consummating.Recently, agency problem of controlling shareholders and small shareholders leading to the company's value put-down, and this phenomenon has become one of hotspots which we research corporate diversification discounts. This paper attempts to draw the result of corporate diversification discounts thought constructing the agency problems models between controlling shareholder and small, with corporate value as the value judgments basis. Based on the model result, we examine our listed firms also have diversification discounts in multi-years and big sample's data by excess value method using extensively in international literatures.On the basis of the above research, we make empirical analysis on the influence of corporate diversification discounts though plundering way of controlling shareholders, properties and specific control mode. We notice that the deviation degree of cash and control is big, it shows that there has the serious grab behavior of controlling shareholders in diversified corporate. To a certain extent, the board of directors scale is bigger the diversified corporate performance to be better, independent directors and shareholding director's increase can also help the company performance enhancement. The government control corporate, relatived to non-government control corporate, its corporate value is lower, and this is mainly caused by the low level government control corporate value.We profit from the domestic and foreign real diagnosis method, use the SPSS statistical method, and make the statistical regression analysis to the influencing factor In the process of writing.The results witness agency problems can effectively interpret corporate diversification discounts and show the characters of diversified corporate.