Private Benefits Of Control Of Listed Companies Theoretical And Empirical Study

The so-called control is essentially a big shareholders of the company's supervisory power and influence around the company's decisions. The major shareholders of listed companies on the one hand control of the company about the value of the stock, on the other means of uptake by some hidden benefits, resulting in a value. The existence of this value to the cost of hollowing out the company assets, and often discarded by the capital market. With the equity in China, to further focus, the focus of corporate governance shift has occurred, owners and operators from the agency relationship between the transfer to safeguard the legitimate interests of minority shareholders, as well as the resulting expropriation of minority shareholders the phenomenon of interest. This selection of A-share market were nearly home event for the sample of the transfer agreement, from the perspective of private benefits of control indirect measurement of the large extent of the expropriation of minority shareholders and, through regression analysis of the impact of private benefits of control factors. Preliminary conclusions are: the control of listed companies in China the level of 27.9% of net assets of the company, reflecting the major shareholders of listed companies in China against the extent of minority shareholders; transfer ratio, cash and short-term investment and the level of private benefits of control are related, the company held cash and short-term investments, the more prone to major shareholders violations; get listed status of the company's largest shareholder, but also the transfer agreement is an important factor to consider; the proportion of outstanding shares , financial leverage and control over income negative. Visible, in order to maintain the healthy development of China's capital market, should further improve the legal system, improve the ownership structure, the establishment of diversified investors and property rights system checks and balances to protect the interests of investors; further promote equity circulation, better play to the external circulation of shares shareholders, supervisory role, to further improve the creditor management system, so that creditors can effectively oversee the company's business practices, the same time, regulators should strengthen listed companies, dividend policy, supervision and management, encourage listed companies to dividends, to prevent those "smaller share of the high coordination "The listing of violations. Therefore, the value of research and effective control over the assets of the company to avoid risks, for the strengthening investor confidence and prevent financial risks and promote sustainable development in the national economy very important practical significance.