The Action Mechanism Of Interlock Director On Benefits Of Control

The behavior of the major shareholder's private benefits of control is a recognized corporate governance problem,under the condition of external regulation Lacking and internal corporate governance failure,as one of the members of the board of directors of interlocking directorates,have the motivation and ability to influence self-interest behavior of major shareholders.In two aspects of individual behavior and network characteristics of Interlock Director network,the paper analyzes the motivation and ability of major shareholder to affect the configuration of Benefits of control,Furthermore,through the analyzes of control levels redefine?factors on the power balances of major shareholder and the base of the power balances of interlock director,proposed the balances of interlock director and major shareholder power determine the elastic boundary of benefits of control.The paper conducts an empirical analysis,through econometric model on the relationship between the interlock director and the Benefits of control,conclude that the preliminary results of the power balances of interlock director and major shareholder on the configuration of benefits of control.Therefore,through the analyzes of network characteristics of Interlock Director network and the power balances of interlock director and major shareholder,the paper clarify the action mechanism of Interlock director network on benefits of control,widen the vision field of the analyzes of interlock director network and benefits of control,provides a solid theoretical foundation to control the major shareholders behavior?standardize interlock director network?improve the external supervision system effectively.Main conclusions as follows:First,on the basis of the linkage effect of benefits of control and enterprise performance,through the analysis of the effect of cost control,tht paper divide the benefits of control into four levels:normal benefits of control,reasonable benefits of control,the excess benefits of control,and public benefits of control.the rigid boundary for normal benefits of control,between the rigid and elastic boundary for private benefits of control,elastic boundary for shared benefits of control.Especially,this paper defined the excess benefits of control is the private benefits of control,sharing benefits of control which contains the reasonable private benefits of control and public benefits of control.Second,Through the influence of the external situation and the subject cognitive level of major shareholders on the power balances of the major shareholders,and the analysis of the basis power of interlock director,builded by the board of directors system and the network,this paper puts forward four results of the influence of the power balance of interlock director and major shareholder on the configuration of benefits of control."wild Tunneling ","wit","entrepreneurial spirit","joy Shared with people".Third,through the empirical research,the paper concludes that:First,the positively relationship between the center of interlock director and separation of ownership and control and the corporate performance,namely the center of interlock director has significant inhibitory effect on private benefits of control,and can promote largest shareholder access the Shared benefits of control.While the structure hole of interlock director can't inhibitory the private benefits of control;Second,the interlock director inhibition for private benefits of control,mainly comes from the interlock director of non-position in shareholders' company;Third,the non-linear inverted U-shaped relationship between the largest shareholder's stake and private benefits of control,and positively U-shaped relationship between private benefits of control and corporate performance.Forth,ownership concentration on the relationship between the interlock director and the benefits of control have significant positive adjustment effect,showing that,on the overall trend,major shareholders holdings strengthened the interlock director' inhibition to private benefits of control and the interlock director' promotion to shared benefits of control.