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.
ZHANG Yujing,XUE Youzhi,ZHANG Rongrong. Research on the Impact of Multiple Large Shareholders on Asset Divestiture Strategy[J]. Chinese Journal of Management, 2023, 20(11): 1600-.
