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| Research on the Impact of Multiple Large Shareholders on Asset Divestiture Strategy |
| ZHANG Yujing，XUE Youzhi，ZHANG Rongrong |
| Nankai University， Tianjin， China |
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Abstract Using samples of Chinese A-share listed firms during 2007~2020, this study investigates the impact of multiple large shareholders on asset divestitures. The result shows that multiple large shareholders could reduce asset divestitures by alleviating executive self-interest behaviors and financing constraints. Further research finds that multiple large shareholders reduce the divestiture of non-related assets and non-strategic asset divestiture that are not conducive to the long-term development of enterprises. The negative effects are more significant in the absence of cross-ownership and unpledged shareholders’ equity. Multiple large shareholders can enhance corporate value by reducing asset divestitures.
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Received: 20 October 2022
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