An Study On The Effect Of Capital Expropriations By The Large Shareholder To The Performance Of Listed Corporation

With the development and improvement of the securities market, the capital market has entered a new period, but in the same time, it produced many problems, one of the frequent problems is the capital expropriation by the big shareholder. The big shareholder uses its stock equity to control the general meeting of shareholders of listed companies to encroach on the interests of the listed company to meet their own personal interests. The long-term existence of the situation has brought various problems to the development of listed companies. In this context, researching on the relationship between the capital expropriation by the big shareholder and corporate performance is particularly important, we can through this research to find its negative impact and formulate effective measures to solve this problem.Reviewing in the study about the capital expropriation by the big shareholder and the relationship between the capital expropriation by the big shareholder and corporate performance at home and abroad, I conducted the literature review, and then reviewing the big shareholder, the capital expropriation by the big shareholder, the relationship between the capital expropriation by the big shareholder and corporate performance, the principal-agent theory and equity theory, I puts forward the research hypothesis. This article is based on China’s Shanghai a-share listed companies, finally confirmed 2128 sample data of the China’s Shanghai A shares from year 2010 to 2012,then do the descriptive statistics, correlation test and multiple regression analysis about the relationship between the capital expropriation by the big shareholder and corporate performance.This article quantizes the corporate performance into four levels:profitability, solvency, growth ability and operation ability. The Research results show that the relationship between the capital expropriation by the big shareholder and corporate performance of the sample company company’s is negative correlation, when the capital expropriation by the big shareholder is more, the worse the company’s performance level.Based on the research conclusion, this article puts forward the relevant policy recommendations about the relationship between the capital expropriation by the big shareholder and corporate performance.:firstly, perfecting the related laws and regulations, strengthen the supervision of related party transactions; Secondly, setting up the appropriate equity balance degree; again, we should establish internal and external regulatory system, strengthen the penalties; finally, strengthening publicity and education, improve the protection awareness of the small and medium-sized shareholders.