Controlling Balance of Multiple Large Shareholders of China´s Listed Corporations in Pyramidal Ownership

This paper empirically investigates the impact of control contestability among multiple large shareholders in the ultimate controlling shareholders´ dominant control ownership. The paper´s new findings show that when the separation of cash-flow and voting rights of the ultimate controlling shareholder (CF_u/V_u) is higher, multiple large shareholders have more incentives and ability to monitor the ultimate controlling shareholder, which has a positive effect on the operating performance, when CF_u/V_u is lower, there is more argy-bargy between the ultimate controlling shareholder and other large shareholders, which destroys the operating performance. When the identity types of multiple large shareholders are different, the monitoring incentive of other large shareholders on the ultimate controlling shareholder surpasses the coalition incentive, which has a positive effect on the operating performance.