The Split Share Structure And The Major Shareholders Influence To The Company's Capital Investment

The main Research about the corporate governance is about the conflicts of interest between the large shareholders and small shareholders, in China, special economic system led to China's character that "the dominance of state-owned shares", this Special ownership structure led the conflicts between the major shareholders and the minority shareholders of listed companies More serious. In many cases the performance of large shareholders and insiders of the super control of listed companies, and it was "due to the dominance of state-owned shares" of the ownership structure also makes a serious weakening of corporate governance. And at this stage, the legal system and Regulators is not perfect in China. the insiders or major shareholders of the company can influence the financial and operating decisions, and therefore capital investment of listed companies also Reflected the aggressive behavior characteristics. Over control of major shareholders within the company to play a governance mechanism, but also seriously hindered the healthy development of capital markets, and disrupted the normal order of market economy. The Ownership Structure Reform is to change the unreasonable ownership structure and make it improvement.In this paper, we made a systematic Review of foreign investment behavior, and combined with our Ownership Structure characteristics that major shareholders controlling, taking into account the split share structure Reform, ownership structure may lead to lead to change and improve the corporate governance mechanism, The major shareholders of listed companies under the control of capital investment behavior, also investigated the impact that split share structure Reform under the control of large shareholders lead to the investment behaviorsThe Results showed that:the existing ownership structure, largest shareholder due to the dominance, weakened corporate governance mechanism, all this lead the over-investment is a common behavior of listed companies, and investment has free cash flow-sensitive, the more free cash flow, the more serious over-investment; compared to non-state-owned listed companies, state-owned listed companies over investment more serious; the increasing of cash flow rights cue the over-investment behavior of listed companies, and Reduce the separation of ownership and help alleviate the occurrence of over-investment; the split share structure Reform improving governance, promoting the role of corporate governance mechanisms, and its ease over-investment behavior in the list company.