Author(s)

Yunru Chen ¹, Jiaxin Yao ²

Affiliation(s)

¹ Business Management Scientific Academy, Chengdu University of Technology, Chengdu, Sichuan, 610059, China
² School of Business Administration, Harbin Cambridge College, Harbin, Heilongjiang, 150069, China

Corresponding Author

Yunru Chen

ABSTRACT

This article aims to explore the impact of the threat of uncontrolled major shareholders withdrawal on the phenomenon of short-term versus long-term borrowings investments under the influence of a high-quality economic environment. This project examines the correlation between the "exit" risk of major shareholders and their short-term lending and long-term investment behaviors based on data from Shanghai and Shenzhen for the period 2007-2021. The results show that the "exit" of non-controlling majority shareholders plays a restraining role in short-term borrowing and long-term investment in listed companies in China. As the amount of stock outstanding increases, competition among non-controlling majority shareholders becomes more intense and the risk of their departure becomes greater, which has a greater impact on short-term borrowing and long-term investment in the company. This article has a novel research perspective, enriches relevant literature, and serves as a decision-making reference for corporate governance in reality, which is beneficial for internal management and subsequent development of enterprises.

KEYWORDS

Uncontrolling major shareholders exit threat, short-term loans, long-term investments, enterprise management

CITE THIS PAPER

Yunru Chen, Jiaxin Yao, A Study on the Threat of Non-Controlling Shareholders' Withdrawal and Its Impact on the Relationship between Lend Short and Invest Long. Financial Engineering and Risk Management (2023) Vol. 6: 63-70. DOI: http://dx.doi.org/10.23977/ferm.2023.060807.

REFERENCES

[1] Liao Jia, Zhan Yun. Non-controlling major shareholders and corporate investment decisions [J]. Journal of Zhongnan University of Economics and Law, 2023 (03): 3-15. 
[2] Jian Guanqun, Gao Ying. The Threat of Uncontrolling Major Shareholders' Exit, Social Responsibility Fulfillment, and Risk of Stock Price Collapse [J]. Finance and Economics, 2023 (05): 59-70. 
[3] Yu Nutao, Wang Han, Zhang Huayu. Non-controlling major shareholders participating in corporate governance: seeking change or being conservative—From a Strategic Adjustment Perspective [J]. Luojia Management Review, 2023 (01): 53-74
[4] Wang Shengnian, Liu Yangyang. Does the threat of non-controlling major shareholders withdraw affect auditors' risk decisions? [J]. Business Economic Management, 2023 (03): 35-49. 
[5] Sun Weiyan, Hu Shiji. Research on the Impact of the Threat of Uncontrolling Majority Shareholders' Exit on Audit Pricing [J]. Financial and Accounting Communication, 2023 (05): 43-47+88. 
[6] Sun Weiyan, Hu Shiji. Can the threat of non-controlling major shareholders withdrawing suppress corporate violations [J]. Journal of Heilongjiang Bayi Agricultural and Reclamation University, 2023,35 (01): 91-99 
[7] Yang Xingquan, Li Shasha, Li Chuang. The Threat of Uncontrolling Majority Shareholders' Exit and Company Investment Efficiency: Capital Optimization or Investment Shortsightedness [J]. Finance and Trade Research, 2022, 33 (11); 69-81+110. 
[8] Li Xin. Research on the Impact of Equity Concentration on R&D Investment of ChiNext Enterprises: From the Perspective of Non-Controlling Majority Shareholders [J]. Investment and Entrepreneurship, 2022,33 (21): 143-145 
[9] Liu Yangyang, Wu Haomin. The Threat of Uncontrolling Majority Shareholders' Exit and the Risk of Stock Price Collapse [J]. Finance and Accounting Monthly, 2022 (21): 35-41. 
[10] Wang Lei, Sha Yifan, Yu Wencheng, Wang Yaru. The exit threat of non-controlling major shareholders and corporate social responsibility communication [J]. Management science, 2022,35 (05): 19-34 
[11] Chen Peiyou, Yang Beibei, Gao Taiguang. The threat of non-controlling major shareholders' exit and the stickiness of executive compensation [J]. Finance and Accounting Monthly, 2022 (18): 25-34. 
[12] Ren Shiqi, Gao Tianhong. Can the threat of non-controlling major shareholders withdrawing improve the pricing efficiency of the capital market—Empirical research based on the perspective of stock price synchronicity [J]. Journal of Zhengzhou University of Aeronautics, 2022, 40 (04): 62-69. 
[13] Jiang Fuxiu, Wang Ying, Ma Jia. The Development History, Emerging Fields, and Future Prospects of Corporate Governance [J]. Academic Research, 2023 (04): 72-80+177-178 
[14] Chen Kejing. Can the threat of non-controlling major shareholders withdrawing reduce corporate agency costs [J]. Nankai Management Review, 2019,22 (04): 161-175
[15] Yu Nutao, Zhang Huayu, Zhao Liping. The exit threat of major shareholders and enterprise Assumption of risk: avoiding losses or seeking opportunities? [J/OL]. Mathematical Statistics and Management: 1-21 [2023-06-12] 
[16] Yang Chunhua, Wang Jinghua. The threat of major shareholder exit and corporate tax evasion [J]. Modern Economic Discussion, 2020 (12): 39-49

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics