A Study On Incentives To Large Shareholders Of Listed Companies

The intense concentration of company shares causes the large shareholders to control the company being the reality,turning into a kind of rule all over the world. This change brings corporate governance a new agency,this agency arises between the large shareholder and the little ones,such as the large shareholders' tunneling. However,as a kind of corporate governance mechanism which substitutes distempered law because the distempered law can not safeguard the benefits of investors,the active effect of the large shareholders in the corporate governance can not be ignored.Accordingly it is necessary that the large shareholders should be motivated.The large shareholders incentive is a mechanism that the company uses multi-incentive measures named control benefits to motivate the large shareholders exert active effect in the company governance and form interaction and mutual conditionality with other stakeholders so as to realize the maximization of company benefits.The dissertation discusses the essence of benefits of control and analyses the infection to large shareholders monitoring behavior by the "free-rider problem"of the small shareholders.At the same time,the dissertation analyses two effects of the large shareholders in company governance:the first one is the active effect by using the asset' return of cash flow(RCF) and the control transfer sample in the Chinese listed company,the second one is the passive effect by using excessive benefits of control. This dissertation examines the contributions and the expropriation degree and its influence factors.The excessive benefits of control are the real embodiment of lager shareholders' agency.In fact,the control power has become a kind of an independence economic right, So the master or exertion of it should exist legal profits.The benefits of control should be given to the large shareholders as the compensation.So the commodity attribute of control power should be recognized,the legality of Benefits of Control should be recognized,too.Also,the expropriation actions should be prevented through the corporate governance mechanism.The exterior governance circumstances including law are effective in preventing the expropriation degree of the shareholders.