Research On The Relationship Between Ultimate Controlling Shareholder's Separation Of Two Powers,Capital Appropriation And Investment Efficiency

The ownership concentration of Listed Companies in China is obvious.The ultimate controller realizes the separation of control and cash flow rights through the Pyramid structure.The ultimate controller often uses his excessive control power to seek private gain,which is based on the ultimate controlling shareholder's capital appropriation,and the investment efficiency of listed companies is low.In this paper,the relationship between the two rights separation of the ultimate controller of private listed companies and the two of the investment efficiency is specific to the behavioral level,which reveals a clearer and complete relationship.This paper takes a share listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange as samples from 2014 to 2016 as an example.The study found that the possibility of ultimate controlling shareholders encroachment on corporate funds to obtain private benefits decreases with the increase of cash flow rights.The relationship between the separation of two rights of private listed companies and the efficiency of investment is verified,and the intermediary effect of the capital occupancy in the relationship of the two sides is demonstrated through the method of the test of intermediary effect.The separation of the two powers affects the cash flow of the listed companies through capital encroachment and affects the investment efficiency of the listed companies.Some suggestions are put forward in this paper.On the one hand,we must maintain the independence of the board of supervisors so that the board of supervisors has the right to supervise the majority of shareholders and strictly regulate their duties.On the other hand,we need to improve the information disclosure system of listed companies and reduce the tunneling behavior of listed companies.Finally,we need to strengthen the supervision of capital occupation of listed companies,so as to promote the healthy development of China's private listed companies.