System Analysis of Interests Conflict Between Controlling Shareholders and Minority Stock Holders

Agent cost of share decentralization comes from managers and all shareholders; however, in companies with comparative centralization or high centralization of shareholders, it is a serious phenomenon that controlling shareholders seriously harm the interests of minority stockholders. Without the control of laws or relevant systems, it is inevitable that the controlling shareholders will maximize their private benefit in every possible way. Through theory of company ownership structure, game theory of non-cooperation and efficiency constant, the article analyzes the system of benefit conflicts between controlling shareholders and minority stockholders.