The empirical study on the effect of ultimate controlling shareholders' excess control right on fund embezzlement

Considering the tunneling and the propping synthetically, this paper studys the net effect of ultimate controlling shareholders' excess control right. This paper shows that the relationship between the excess control right on stockholders' meeting and the net fund embezzlement takes on U-shape relationship. In other words, with the increase of the excess control right on stockholders' meeting, the net fund embezzlement first decreases and then increases. The relationship between the excess control right on board of directors and the net fund embezzlement is just the same as the relationship between the excess control right on stockholders' meeting and the net fund embezzlement.