Major Shareholder Tunneling and Irrational Donations

Yi Zhang; Jiaqi Luo

Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27–29, 2023, Tianjin, China

Research Article

Major Shareholder Tunneling and Irrational Donations

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@INPROCEEDINGS{10.4108/eai.27-10-2023.2341955,
    author={Yi  Zhang and Jiaqi  Luo},
    title={Major Shareholder Tunneling and Irrational Donations},
    proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China},
    publisher={EAI},
    proceedings_a={ICEMBDA},
    year={2024},
    month={1},
    keywords={irrational donations; institutional shareholding; independent director system; the second type of proxy conflict},
    doi={10.4108/eai.27-10-2023.2341955}
}

Yi Zhang
Jiaqi Luo
Year: 2024
Major Shareholder Tunneling and Irrational Donations
ICEMBDA
EAI
DOI: 10.4108/eai.27-10-2023.2341955

Yi Zhang¹, Jiaqi Luo²^,*

1: Dongbei University of Finance and Economics
2: Dalian Maritime University

*Contact email: luojiaqi2019@dlmu.edu.cn

Abstract

Based on the definition of rational and irrational charitable donations by enterprises, this article attempts to further clarify the micro mechanism by which agent conflicts lead to irrational donations by enterprises. This article starts from the perspective of the second type of proxy conflict) and examines the complete mechanism of proxy conflict affecting irrational donations by enterprises. Starting from specific mechanisms of corporate governance such as institutional shareholding and independent directors, it examines its governance effect on non ideal donations by enterprises. Thus providing management inspiration for suppressing irrational donation behavior of enterprises.

Keywords: irrational donations; institutional shareholding; independent director system; the second type of proxy conflict

Published: 2024-01-19
Publisher: EAI

: http://dx.doi.org/10.4108/eai.27-10-2023.2341955