The Control Of Large Shareholders、the Enterprise Lifecycle And Investment Efficiency

Big shareholder control problem is one of the hot issues for economists and financial experts. Big shareholder control has two effect, one is " incentive effect" and the other one is "tunneling effect". Incentive effect could improve enterprise value though improving the efficiency of investment management or participate in the economic management activities. The incentive effect also can obtain private benefits through its control encroach on minority shareholders rights and interests, which will reduce the investment efficiency. Existing literature about the big shareholder control impact on investment efficiency do not have consistent conclusion, probably because that they ignore the enterprise life cycle.We are know that different life cycle have different characteristics, leading to the different control problems of big shareholders and investment efficiency. This paper based on the new perspective of enterprise life to research the investment effect of big shareholders, which can help us know the big shareholders motivition and its behavior to efficiency of investment.Firstly, this article reviewed the big shareholder control "incentive effect" and "tunneling effect" and the literature of investment effect, combining enterprise life cycle literature to expound the necessity of this paper. Secondly, based on the principal-agent theory, asymmetric information theory, enterprise life cycle theory analyzing the big shareholders control influence to the efficiency of the investment and pointing the differences the big shareholders did on investment effect. Thirdly, the researching sample choosing 9182 companies that are listed companies from 1999 to 2013 after eliminating some special company.This paper using Logistic regression method to examine the first big shareholder control impact on investment efficiency, and application of the comprehensive scoring method and method of industry economics method, the total sample is divided into growth, maturity and decline three phases, examine the enterprise life cycle variables impact on investment efficiency, as well as the big shareholder control in different life cycle impact on investment efficiency, then the total sample is divided into investment excessive samples and insufficient samples separately carried on the inspection. The results show that the large shareholders control the whole life cycle of the enterprise, there is no significant impact on the investment efficiency, and to distinguish the different stages of life, in the growth period, large shareholder control of investment efficiency of "incentive effect", big shareholder control variable suppresses the enterprise life cycle to the negative impact of investment efficiency; In the mature period To weaken the influence of excessive investment, enterprise life cycle and the big shareholder control increases over-investment, characterized by tunneling efficiency of investment, reduces investment efficiency; In recessions enterprise life cycle impact on investment efficiency is weak, and the big shareholder control can make the lack of investment is more serious, characterized by tunneling efficiency of investment, reduces investment efficiency.Based on the above theoretical and empirical research conclusion, the author of this paper puts forward some reference suggestions, in order to help investors, government regulators and other interest groups understand the behavior of big shareholders.This paper has two innovation points: firstly, this paper based on the perspective of enterprise life cycle, from the aspect of dynamic research to analyzing the big shareholder control effect to investment efficiency, enriching the big shareholder control impact on investment efficiency of the literature. Secondly, this paper investigates the big shareholder control on investment efficiency, enriching the research of large shareholder control to the enterprise value.