New Institutional Economics Analysis of Tunneling of Large Shareholders

Abstract

Expropriation of large shareholders to minority shareholders has been a hot research in corporate governance. Most of the literatures start their research from the perspective of the ownership structure, large shareholders, shareholders game etc. This paper will bring the large shareholder and the behavior of minority shareholders into the principal-agent analysis framework, and use the theory of new institutional economics to explain the expropriation motive of large shareholder. Finally, we find out the way to inhibit large shareholder expropriation behavior.