A Study On Share Company's Investment Behavior And The Effect On Conpany Performance Under The Large Shareholder's Control

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. Because of the China share Com- pany's inborn particularity, most of the companys are under the control of large share- holder. Although the control of large shareholder can provide intendance to managers efficaciously, they'll pursue the private benefit by using the right of control because of their own benefit when they get the share benefit. This cause the change of the share company's purpose. The decision-making is not only for maximum company value, but also for the maximum private benefit of large shareholder. This change work awry be- havior of share company.As the base of long-term development, the investment decision-making is the most important decision of company. But under the control of large shareholder, the investment has became a avenue for getting private benefit. This dissertation analysed the invasion towards other relative and the awry investment behavior based on the analysis of theory of large shareholders control.Under the precondition of theory analysis, This dissertation test the result of the theory through the way of empirical study by using the data of 2002~2004 manufactur- ing share company. And analysed the factor of infection and the logistic contact. The result shows that the company's investment has a obvious contact with the rate of large shareholder, rate of debt and the risk of investment.Based on the analysis of company investment infection factor, this dissertation test the connection of investment and company performance through the way of empiri- cal study by using the same data. And the result shows that the company's performance has a obvious contact with the risk of investment and the rate of investment.At the final part of this paper, we integrated our case study and the reality of the listed companies in China to tentatively propose some suggestions on the regulation of investment behavior of China share company.