Empirical Study on Equity Governance, Expropriation and Corporate Performance

Under the circumstances of incomplete legal system of China, the equity governance characteristics have important influence on expropriation behavior of the controlling shareholder. This article examines the tunneling effect and relationship of equity governance, the result shows that: in China assets occupied, related guarantees and dividend distribution tunneling prevails in listed firms, which largely reduce the corporate performance. And equity governance factors significantly influence the extent of assets used and related guarantees, in particular, whether investors actively participate in governance which has more significant impact on expropriation.