The Exit Threats of Non-controlling Major Shareholders and Corporate Diversification:Inhibition or Promotion?
Based on the sample of A-share listed companies in Shanghai and Shenzhen stock markets from 2007 to 2021,we tested the impact of the exit threats of the non-controlling major shareholders on corporate diversification.The results show that the exit threats of the non-controlling major shareholders exerts its governance function to restrict the diversified expansion of enterprises.Its main mechanism of action is to reduce the on-the-job consumption of management and restrain the hollowing-out behavior of controlling shareholders.The heterogeneity test finds that the inhibitory effect is more significant when the company's executives hold shares,when there are actual controllers,when in competitive industries,and when the quality of the information environment is high.The expansion test finds that the exit threats of the non-controlling major shareholders reduce the degree of irrelevant and relevant diversification,and are more significant in reducing unrelated diversification,which improves the value of diversification at the same time.
non-controlling major shareholdersexit threatsdiversificationdiversified value
万方数据
维普
