Expropriation Effect Of Ultimate Shareholder On Capital Structure Perspective

Nowadays, most of theories aim to seek the best capital structure to maximize value of company. Given the agency conflict between ultimate shareholder and minority shareholder due to separation of ownership and control rights, as the actual decision maker, the ultimate shareholder maybe choose suboptimal capital structure to expropriate benefits of minority shareholder.Referring to the excellent research results from home and abroad, this paper uses normative research and empirical research to explore the expropriation effect of ultimate shareholder on capital structure perspective. First of all, we will analyze the research background and current theory through the way of literature research; Second of all, combined related theory, we use normative analysis to put forward research hypothesis; Finally, we use multivariate statistical and cross-section data including701listed manufacturing companies from Shenzhen stock exchange main board to analyze the expropriation effect of ultimate shareholder on capital structure perspective. Besides, we also put forward some implications and suggestions.Separation of ownership and control rights along with ownership concentration directly urges the ultimate shareholder to promote the lever of subsidiary, so as to expropriate more resources. Information transparency and ownership concentration are expropriation effect paths of ultimate shareholder. Besides, Compared with private ultimate shareholder, state-owned ultimate shareholder has a stronger expropriation effect.