The Impact Of Multiple Large Shareholders On Companies' Investment Efficiency

The ownership structure of a company determines the composition of its owners,which in turn determines its attributes,organizational form,governance structure and other characteristics.Finally,it is refined into the daily operation of the company,fundamentally affecting its value creation and development.As an important subject in the market economy,companies' behaviors not only affect their own growth,but also have an important impact on the operation of national economy.The investment behavior of a company is the cornerstone for it to realize added value.How to make the right investment decisions and how to improve the efficiency of investment are the core issues facing all companies.According to the previous studies of scholars,the factors affecting the investment efficiency can actually be attributed to information asymmetry and agency problem.The impact of the first type of agency problem which refers to the contradiction between shareholders and managers on the investment efficiency of companies,has been discussed by many scholars.In recent years,the second type of agency problem between large and small shareholders has become a hot issue in the academic field.Many scholars have studied the influence of ownership structure on corporate value,performance and governance,but few have discussed the effect of this issue on corporate investment efficiency in depth.Although some scholars have paid attention to the issue of the control right of the largest shareholder and the influence of the checks and balances of the second or the first several major shareholders on the investment efficiency of the company,few scholars have taken other large shareholders other than the controlling shareholder as the focus of the study for a systematic and in-depth discussion.Based on this,this article defines multiple large shareholders as those with a shareholding ratio more than 10% but less than 50% to explore their role in companies' investment efficiency.This paper selected 831 companies listed in the A-share market in CSMAR database from 2011 to 2017,and 5,817 sample observations as research objects,then respectively studied the impact of having multiple large shareholders on companies' investment efficiency,the impact of the checks and balances from other large shareholders on the investment efficiency,the impact of the heterogeneity of multiple large shareholders on companies' investment efficiency and how do multiple large shareholders influence companies' investment efficiency.It is found that compared with companies with a single large shareholder,those with multiple large shareholders usually have higher investment efficiency,and the higher the degree of equity checks and balances of multiple large shareholders,the higher the investment efficiency of companies.When the heterogeneity of multiple large shareholders is analyzed,it is found that the existence of large institutional shareholders has a significant positive impact on the investment efficiency,indicating that they have monitoring effect on the controlling shareholder,while the existence of large foreign shareholders has no significant positive impact on the investment efficiency.Finally,it is found that the existence of multiple large shareholders can inhibit companies' overinvestment.This paper systematically studies the role of multiple large shareholders in companies' investment efficiency,which makes up for the deficiency of relevant literature.At the same time,it also helps companies to optimize their equity structure in practice to improve their investment efficiency,which can finally enhance their development.