Research on Ownership Structure and Minority Investors Protection Based on the Perspective of Ownership Restriction

Abstract

Abstract-Ownership structure is in the basic position of corporate governance. Reasonable ownership structure can promote the improvement of corporate governance, and protect the interests of minority investors. Minority investors are the main source of market circulation funds and play an important role in the development of listed companies. However, minority investors tend to be disadvantaged and their legitimate interests cannot be effectively protected, which seriously affects their enthusiasm for investment. According to the actual situation in our country, "one share being overwhelming big" has long been regarded as the fundamental reason why the interests of minority investors cannot be effectively guaranteed. Ownership restriction can effectively restrict the controlling shareholder invading the interests of minority shareholders. This paper mainly explores the protection of minority shareholders from this perspective.

Literature Review: Dividend Policy, Agency Theory and Corporate Governance

“…Then, research by Li and Luo [7] conducted a study with a survey and analyzed the proportion of ownership and protection of investors with low investments. This study begins with many research findings that explain where the main shareholder uses asymmetric ownership proportions to violate the rights of minority shareholders, which results in supervision and as a result controlling shareholders are motivated to use their control rights to obtain private benefits.…”

“…The study by Li and Luo [7] stated it is the agency problem to make control in between shareholders and external investors. It is also necessary to keep the ownership concentration as it major issues of corporate governance in the market.…”