Comparing Study On Controlling Shareholder Types And Their Private Benefits Of Control

Private Benefits of Control has been a new hot topic in corporate finance during recent years. Researchers represented by La Porta, Lopez-de-Silanes, Shleifer, Vishny and Zingales have done remarkable research and got meaningful results. China has also done some good jobs in the subject of Private Benefits of Control.At he very beginning the dissertation analyzes the institutional factors cause the Private Benefits of Control, and the ways of obtaining Private Benefits of Control based on the well review of previous studies. This work paves the way to the following empirical studies. Then referring to LLSV(1999) and other ones "Ultimate Control Shareholder" idea, the dissertation divides China's Listed Companies into three kinds, that's State-owned Asset Management Agency, State-owned Enterprises and Private Enterprises. The dissertation calculates and compares the scale of Private Benefits of Control of the 240 samples of the three kinds of companies happened during 1999-2007 in the first empirical study part. When doing this, the dissertation uses the adjusted premium model raised by Barclay and Holderness in 1989, and the adjustment is using Net Asset of Per-Shareholder to substitute the market price in the BH modle. In the second empirical study part the dissertation measures the Cash Flow Rights ratio, the Control Rights ratio, the separation Quantum of Cash Flow Rights and Control Rights, and the Levels of Pyramid Shareholder Structure of the 138 samples happened during 2004-2007. After doing this the study tests and compares their impacts on the Private Benefits of Control.This study is meaningful to finds out the scale of every kind of enterprises, the real property rights status and the ultimate control shareholder rights structure of listed companies. Through comparing the Private Benefits of Control scale of different companies, and the different impacts of CR, VR, SQ and Pyramid Levels imposed on the Private Benefits of Control systematically, it is good to perfect the State-owned Asset administration, to supervise the capital market and listed companies, to find out better corporate governance, and all these are necessary to perfect the system aims at protecting small and medium sized investors.