The Influence Of The Abuse Of Control By Major Shareholders On Investment Decision-making

As one of the four major financial activities,investment activities to lay a good foundation for the enterprise normal production and business operation activities,provide means for enterprises bigger and stronger,looking for funding opportunities for enterprises of idle resources,Investment activities in the enterprise's development play a key role.In recent years,however,found that many enterprises to invest,because of the lack of the economic without the risk of serious one's deceased father grind and disorderly investment,some of the areas to be investment don't know,is to invest,resulting in failure of investment projects,the amount of the wreck,and the company,the material loss of social capital is very large,directly leads to a batch of outstanding company on the road to bankruptcy.Company,therefore,how to make rational investment behavior is a very worth studying problem,should be caused take seriously.Company's governance structure to the enterprise investment behavior will have A significant impact,so this article from the perspective of corporate governance structure,with the examples of AX company A project investment decision-making,discuss the relationship between Major shareholder abusesing control position and investment decision,and try to find some alleviate over-investment methodology.This article first to the corporate governance and explain the concept of excessive investment,then,how to explain the concept of the theory on company governance and how to invest some theoretical basis for the study of the following are examples of.In this paper,XK co.,LTD and AX company Major shareholder abusesing control position in A project is how to play A role in the investment analysis,and then analyze the due to the Major shareholder abusesing control position led to A project actually become an excessive investment project,and the feasibility analysis shows that the project is A good project.Through the analysis of the Major shareholder abusesing control position and investment decision,,this paper also tries to put forward some solutions to alleviate over-investment behavior,these measures include:Increase stakeholder engagement,Improve the performance of independent directors,Binding the controlling shareholding position of major shareholders,Increase the illegal cost of controlling shareholders,improve the domestic professional manager system and the social credit system,etc.In this paper,from the perspective of corporate governance theory,with a specific investment projects as the carrier,through the analysis and research Major shareholder abusesing control position and what relationship between investment decision,want to find a solution to the problem of the over-investment is good for the company development has the vital significance.