The empirical research on the relationship between large shareholder's embezzlement of listed company's funds and corporate governance

This paper focuses on the controlling shareholder's embezzlement of listed company's funds and provides a study of the relationship between this problem and corporate governance practice across firm-level. We estimate the large shareholder's agency cost by the funds which was embezzled and its corresponding lost, and the results show that the large shareholder can control company and expropriate the other shareholders by means of appointing executive; The tests also show that there is a remarkable positive correlation between controlling shareholders' agency cost which is from embezzlement and the size or assets liabilities ratio.