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.