Ownership Balance,Shareholder Relations And Controlling Shareholder Expropriation From The Perspective Of Social Capital

The theory of social capital derives from sociology,which has been applied in economics,management and other fields,due to its wide range connotation and the flexibility of application.Specific to the corporate governance research,the exiting corporate governance system is faced with many deficiencies and challenges,and outside the corporate governance system,social capital theory provides a unique research perspective and study thought for analyzing the influence of corporate governance mechanism deeply.In the corporate governance of shareholder level,ownership structure concentration introduces the opportunism and self-interest behaviors of controlling shareholder.In Chinese society,with the wide exiting of relationship and relation network,and also the diversity and concealment of shareholder's expropriation forms,scholars study found that ownership balance is not always effective,and thought of whether there are other factors that affect controlling shareholder expropriation or ownership balance mechanism.What's more,in view of social capital,not only the ownership structure,but also relationship of major shareholders affects controlling shareholder gains private benefit of control.Relationship among major shareholders such as sponsor relationship,IPO strategic investor relationship and so on,also the various network of relationship based on it,affect the behaviour motivation,information acquisition and exchange,economic behavior of major shareholders directly or indirectly,and affect controlling shareholder expropriation significantly,and affect the corporate governance finally.The theory of social capital offers a new research direction of shareholders governance study,which helps to supplement and further study the controlling shareholder expropriation.In this paper,the samples are taken from Shanghai and Shenzhen two city non-state a-share listed companies between 2012 and 2015,SPSS 17.0 statistion software,multiple regression and hierarchical multiple regression are used.In addition to verifies the effect of ownership balance from the aspects of ownership structure research,combines with the perspective of social capital analysis,the paper discusses the effect of controlling shareholder's relationship based on sponsor and IPO strategic investor on it's expropriation.In this way,the equity governance is combined with the social capital governance,and enriches study of factors of controlling shareholder expropriation,the paper also gives practical enlightenment of company.Through the empirical test and analysis,the paper obtains the following main conclusions:(1)Regardless the absolute holding of non-state listed companies,as the sum of equity number from the second to the fifth shareholder to number of controlling owner ration increased,controlling shareholder expropriation that measured by the amount of related party transactions reduced gradually,which means the ownership balance significantly inhibits the controlling shareholder expropriation.(2)In the non-state listed companies,generally,there have close relationship based on blood,kinship and so on.Among the top five shareholders,the number of connections among them more,means that the effect of non-controlling shareholder's psychological ownership,informal communication and trust mechanism is stronger.The empirical results show that the number of sponsor relationship directly on the controlling shareholder has a significant negative effect on controlling shareholder expropriation;(3)As for the IPO strategic investor relationship,the relationship intimacy is lower because of the new investors,and the multiple regression and hierarchical multiple regression results both show that the effect of the number of IPO relationship directly on controlling shareholder on controlling shareholder expropriation is no significant.But the ability of non-controlling shareholders,access to information is stronger because of the weak tie advantage and structural hole advantage,and strengthen the supervision.The hierarchical multiple regression results show that the IPO relationship directly on controlling shareholder has significant positive adjustment effect between the negative effect of ownership balance on controlling shareholder expropriation,which means with the increase of the IPO relationship directly on controlling shareholder,the negative effect of ownership balance on controlling shareholder expropriation is stronger.