The Game of Powers between Major Shareholders and Management in China
Jian Yang Lai

Abstract
As the differentiation of the two contract major-owner and manager, there are two different types of agency costs-the agency cost of management to shareholders and the principal-agent problem of major shareholders to small shareholders. As the different forms and different levels of counterbalance and conspiracy between major shareholders and managements, the companies form the final result - corporate behavior and performance. That is, the value of the company is the external expression of the game between major shareholders and managements. This paper analyzes the two types of agency costs in a studies framework and discusses how to game between the major shareholders and managements and how to impact on the performance of listed companies with the study samples of China listed companies.

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