The Impact Of Types Of Controlling Shareholder On Private Benefits Of Control:a Study On Chinese Listed Companies

Focusing on listed companies’control right transfer events in Shanghai and Shenzhen Stock Exchange from2006to2012, we calculate the scale of the private benefits of controlling shareholders as well as analyze its major determinants empirically. Specially, we compare the difference of private benefits of control caused by various types of controlling shareholders among samples. The research draws the following conclusions:(1) The scale of private benefits of controlling shareholders is large with an average of30.84%. Roughly, it shows an increasing trend over the time.(2) With regard to determinants, the private benefits of controlling shareholders is positively associated with transfer ratio and the proportion of outstanding shares. Meanwhile, there is a negative correlation between the separation quantum of cash flow right and control right and the private benefits of controlling shareholders.(3) When it comes to the impact of various types of controlling shareholders, we find that the level of state-owned enterprise’s private benefits of control is lower than the private enterprise’s. Also we can see a decreasing trend after the first increase of the three types of listed companies’ corporate performance in four years before and after control transfer. The performance of private enterprise is worse than the state-owned enterprise’s after the control transfer.