Large Shareholders Expropriate Benefits Through Excessive Control After Management Turnover
The study looked at how big shareholders in Chinese companies can take advantage of their power to benefit themselves. They found that when these big shareholders change the company's management, they often end up taking more benefits for themselves. The more control the big shareholders have, the more they tend to take from the company. However, if the big shareholders have more rights to the company's profits, they are less likely to take extra benefits. Overall, the study shows that when big shareholders have too much control, they tend to take more for themselves.