The Study On The Effect Of Tunneling Motivation On Corporate Investment Behavior

To an company, investment behavior as the important basis for the growth of future cash flow,are considered as the main cause of the growth and development of the company. Therefore, how toimprove investment efficiency, improve the investment behavior is also the company financeresearch focus, and the optimization of corporate governance structure, perfect the correspondinglegal system is the effective way to improve the corporate investment behavior.In equity height dispersive structure of corporate governance, the conflict of interests betweenshareholders and managers are agents of the main source of the problem, the manager of corporateinvestment decisions will take into account the interests, but their behavior can be affected byoccupation manager market constraints; in highly concentrated ownership structure corporategovernance structure, between large shareholders and small shareholders. Conflict of interest is theagent of the main source of the problem, the majority shareholder in the undertaking wheninvestment is decision-making main weigh their private benefits of control, but majorityshareholder in the company for the tunneling way to encroach on the interests of small shareholdersbecause of its high proportion of shareholding and the loss outweighs the gain.; in the holdings ofmajor shareholders equity ratio is relatively less, have listed the company 's high voting stake,namely the company control right and cash flow ownership is highly dispersed, big shareholders forless cost constraints and has stronger tunneling motivation. At the same time, many listedcompanies in China the reform of state-owned enterprises and products, the" quality assets listed","possessory vacancy" and in2005before the widespread" equity of$two split " phenomenon isaggrandizement major shareholders of listed companies for the tunneling motivation. In this case,the company widespread irrational, inefficient investment behavior is easy to explain, and this paperalso with manufacturing listed companies as a sample, the point further inspection.