Control Structure And The Achievement Of Small-and-medium-sized Shareholders’ Interests

The conflict of interest in the company has always been the core of corporate governance to solve problem. Along with the development of the modern joint-stock company, the contents of the literature research have transferred from the first kind of agency problems between the company owners and operators to the second agency problem between controlling shareholders and small-and-medium-sized shareholders, because the core of corporate governance shifted from the first category of agency conflicts of interest to the second kind. In the company with more concentrated equity, shareholders tend to get more income than small shareholders and this part has no relation to the proportion of shares.The extra income is not due to the ownership of its own, but is the big shareholders’benefits gaining from the small shareholders by the implementation of the infringement.Based on corporate governance mechanism, through the mechanism analysis and empirical analysis on the influence of control structure in different manifestations for small-and-medium-sized shareholders interests, this paper validate that control of checks and balances relationship structure has a more efficient corporate governance mechanism in our country, and facilitates to improve the company’s performance and the smooth realization of the medium-and-small shareholders’interests, to provides the reference for the better corporate governance structure and the healthy development of capital market. Based on the related theory and the analysis of the impact mechanism, it choosesl43A-share listed companies,in which the first big shareholder has been changed between2007and2012(858samples) to do empirical research.Through correlation analysis and regression analysis,the following conclusion can be found.Compared with diffuse ownership company, equity concentration to develop the company’s performance, equity concentration is better for the implement of small-and-medium-sized shareholders’interests.The control structure with the checks and balances relationship is beneficial to the improvement of the efficiency of corporate governance, making the company’s performance increased,so that control structure is more advantageous to the realization of the interests of the minority shareholders, and small-and-medium shareholders’ interests to achieve better with checks and balances strength enhancement.But the first big shareholders of state-owned property has no significant impact on the interests of small-and-medium shareholders in the current market environment of our country.The control of Shareholder in the paper reflect directly shareholder shareholding,assuming that indirectly controlling shareholders is the only one who control, not considering those two situations,the controlling shareholder controlling a number of direct shareholder and a number of controlling shareholders together controlling a direct shareholder. Research conclusion remains to be further perfected and data support.