A Study Of Influencing Factors Of Large Shareholders Expropriation In Chinese Listed Companies

Large stockholder’s expropriation is mainly caused by excessive ownershipconcentration. The representative scholar LLSV thinks that large shareholders sharesprofit with small shareholders on one hand, and by using the control status exclusivelygets private benefit, so bringing about interest conflicts among them. the imperfectsystem and the asymmetry information in securities market cause the listedcompanies、 its listed subordinate companies and affiliated companies to stagecomplex transactions. And relationship between the profitability of listed companiesand the major shareholders’ cash flow ownership will make the large shareholdersobtain private benefits by means of controlling rights. Chinese listed companies withpyramid structure of the large shareholder carry out incentive appropriationmechanism. With high concentration of ownership and incomplete legal system ofprotection of small shareholders’ interests, large shareholder takes improper means toachieve expropriation. Therefore phenomenon of large shareholders expropriation ofminority shareholders interests is often seen, influencing the order of the China’ssecurities market. Therefore, in order to fundamentally solve the large shareholders’expropriation behavior from roots, large shareholders’ expropriation behavior factorsand intrinsic motivation mechanism must be studied with theory and realitysignificance.Based on research literature of the large shareholders’ expropriation behaviorinfluence factors, a summary was made, and the related theoretical analyzed and thenthe tunneling pathway discussed and production of large shareholders’ expropriationsystem and environment analyzed. Then selecting the2004and2009listed companiesas samples and using logistic model, after empirical analysis of influencing factors oflarge shareholders’ expropriation behavior, we find that the variable of Equity Sub-Set Degree（ESSD） has important negative effects on happening of the largeshareholders’ expropriation behavior, the variable of company scale(Lnaseetrepresenting) important positive effects; and then, from2004,2005,2009and2010the listed companies as samples, using the panel data model, after empirical analysisof influence factors of large shareholders’ expropriation degree, we find that thevariables of Asset-Liability Ratio (ASLR) and Board of Supervisors Scale (BOSS) is positive impact on the degree of expropriation of large shareholder; the variables ofEquity Sub-Set Degree（ESSD）and company scale(Lnaseet) negative impact. Thevariable company scale in tow kinds of modes show the positive and negativeinfluencing separately. This is an interesting conclusion.