TITLE:
A Study on the Relationship between the Shareholding Ratio of the Controlling Shareholders and the Capital Occupation under the Different Capital Structures
AUTHORS:
Xuangang Lv
KEYWORDS:
Capital Structure, Controlling Shareholder, Capital Occupation, Panel Threshold Model
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.7 No.3,
March
31,
2017
ABSTRACT: Based on
Hansen’s “threshold panel regression model” [1], this paper studies the relationship
between shareholding ratio and capital occupation of listed companies in
consideration of the difference of capital structure of the company, through
the double threshold test method to determine the threshold value. The results
show that there is a significant interval effect between the proportion of
controlling shareholders and capital occupation of listed companies, but there
is no “inverted U” relationship expected. The relationship between the two is
due to the high ratio of assets to liabilities. And the “inverted U”
relationship appears when the asset-liability ratio is low; the shareholding
ratio of the controlling shareholder of the listed company is negatively
correlated with the capital occupation, and when the asset-liability ratio is
high, the two are positive related. We analyze the above-mentioned results from
the cost and motivation of controlling shareholders of listed companies in
China, and put forward some policy suggestions for listed companies, the main
creditor banks and the regulators.