Controlling Shareholder, Ceo Incentives And Corporate Diversification Empirical Research

Recent years, corporate diversification has been one of the hotspots of the theoryand practice of the industry's study.Throughout the history of enterprise development,profound changes in the strategic diversification of the enterprise as a way to grow iscommonly used in modern industrial enterprise development to a certain extent, andhow to enable enterprises to grow,what kind of diversification to enable enterprises togrowis the diversification of the theory and practice of the core is the most valuablecontent.This article aims to draw on the basis of the theoretical and empirical researchon corporate diversification at home and abroad, to conduct exploratory research fromthe perspective of the diversification strategy formulation and implementation of themechanism of the controlling shareholder, ceo of corporate diversification strategy.Firstly, the theoretical basis of this topics,the principal-agent theory, the majorshareholder of hollowing out hypothesis, the management of power theory andstrategic synergies theory discussed in this paper is mainly based on the principal-agenttheory to study the controlling shareholder. Ceo of corporate diversification strategy,due to the different corporate equity governance structure, may lead to the controllingshareholder of the essence of power management in real terms in power phenomenon,in both cases, the performance of the principal-agent problem is notthesame.Concentration the higher the actual situation of China stake, the controllingshareholder to a large extent determines the corporate strategic decision making, thelargest shareholder in the development of corporate diversification strategy from thepoint of view is more conducive to the development of enterprises to developenterprisemultifaceted strategy is to develop diversification strategies in order to reapprivate benefits worthy of our inquiry; corporate Ceoto a large extent affect theimplementation of the corporate diversification strategy, due to the existence ofprincipal-agent problem, the controlling shareholder will Ceo to take certainincentivemeasures, if the controlling shareholder is based on the development ofenterprises to develop business diversification strategy, it will tend to implement moreof Ceo equity incentive, otherwise it will implement additional pay incentives.Secondly, the controlling shareholder,Ceo, corporate diversification strategydefinition, and sort out at home and abroad with the topics related to the researchliterature on the basis of clear ideas of their own research and the use of specificempirical analysis.2007-2010Year industry disclosure of main business income of Shanghai and Shenzhen A-share listed companies as samples SPSS18.0software carriedout the empirical analysis reached the following conclusions: First, the controllingshareholder tend to develop multi-enterprisestrategy, but not significantly；Ceocompensation incentives and corporate diversification are positively correlated butnot significantly enhance a wide range of strategic performance,and the Ceo's equityincentive and corporate diversification relationship was not significant, but it cansignificantly enhance the diversificationstrategic performance; is the controllingshareholder of the degree of decision-making control Ceo pay incentives, equityincentives, there is a positive interaction.Through this study, preliminary reveal thecontrolling shareholder, the Ceo of the mechanism of corporate diversification strategyfor exploring how to build a harmonious relationship of controlling shareholder Ceo inthe process of diversification, to provide empirical evidence.