Different Ultimate Control Person Under The Over-investment Motivation Research

In the environment of weak law enforcement and corporate governance, thecontrolling shareholder enjoy more private benefits of control. And also listedcompanies has the characteristics of multitasking. As a result, the objectives of analyzesthe relevance of over investment and motive of over-investment (obtain control benefits,improve local government revenue and promote local employment) are diversity andthe company's operating efficiency may not be the first. It is necessary to haveinefficient over-investment. Therefore, over-investment behavior of Chinese listedcompanies aim to obtain control benefits, to improve local government revenue and topromote local employment. In accordance with the ultimate control of the transmissionmechanism, the ultimate controller of the actual master talent is the main financialpolicy. This article follows this line: the ultimate controller-over investment-motiveof over-investment (obtain control benefits, improve local government revenue andpromote local employment), and it analyzes the relevance of over investment andmotive of over-investment (obtain control benefits, improve local government revenueand promote local employment) on the condition of different ultimate controller andmake empirical analysis. From the perspective of the ultimate controller this articleanalyzes the behavior of over investment and motive of over-investment: to obtaincontrol benefits, enhance local government revenue and promote local employment. Itnot only expands research perspective of the company's over investment, but is alsogood for monitoring and regulating the company's behavior of obtaining controlbenefits. And it is good for improve local government revenue, increasing GDP andaddressing issues of local employment.