An Analysis of the Problems of Agency among Shareholders in the Broad Sense of the Corporate Governance--Taking Shide Investment Corporation Reducing the Shareholding of Ningxia Dayuan Chemical Co. Ltd. as an Example
An Analysis of the Problems of Agency among Shareholders in the Broad Sense of the Corporate Governance--Taking Shide Investment Corporation Reducing the Shareholding of Ningxia Dayuan Chemical Co. Ltd. as an Example
GAO Yu, REN Bao-ping
(School of Economics & Management, Northwest University, Xi’an 710127, China)
Abstract The event of Shide Investment Corporation reducing the shareholding of the Ningxia Dayuan Chemical Co. Ltd. indicates that the theory of corporate governance, which focuses on the agency problem between shareholders and managers, can not explain the factual issues in China’s corporate governance very well. So it is necessary to research corporate governance in the broad sense of all parties in the corporate contracts of enterprises claiming the right of control. In the issue of the management control, there is principal-agency relationship between large shareholders and small shareholders and serious agency problems. Under the asymmetric information, the rent-seeking action of large shareholders will do harm to the income of small shareholders, the development of the capital market, and the income distribution. Therefore the relationship among the interest groups within shareholders should become a very important content of the corporate governance
GAO Yu,Lin-Bao-Beng. An Analysis of the Problems of Agency among Shareholders in the Broad Sense of the Corporate Governance--Taking Shide Investment Corporation Reducing the Shareholding of Ningxia Dayuan Chemical Co. Ltd. as an Example. Economic Survey, 2011, 28(2): 0101.
2011, Vol. 28 
