Research On The Relationship Between Ultimate Controller In Private Listed Companies And Corporation Performance

Since 1932 Berle and Means published the classics of the "modern corporation and private property", the relationshion between the ownership and control of the company and enterprise value becomes a problem often discuss in economics literature. LaPorta, etc. (1999) first put forward the concept of ultimate owner, he pointed out that because of the separation of control and cash flow rights,when analysis of the structure of equity ownership shall, we should found out ultimate owner by control chain, rather than simply by the large shareholder as controlling shareholders. Due to the ultimate controller have more control than its corresponding ownership, rusult agency costs between ultimate controller and small and medium shareholders, and then influence enterprise performance.With the continuous development of China's market economy in China, private enterprises grow up rapid, and both like hope group, lenovo, huawei group, and so large-scale private enterprise, also have a certain scale and the rapid rise of the technology or service private enterprise, in addition to large Numbers of distribution of small and medium-sized private enterprises and professions, the private enterprise play increasingly significant role in economy and society, become the important enterprise groups to economic development of China,From the ultimate control logic of the shareholders,this paper selects the 1069 listed private companies as the sample from 2007 to 2009, empirical analysts the status of ultimate control and cash flow right and the influence to enterprise value.Being explained variables, this article selects net assets yield performance index as a measure of the company performance, In the aspect of explanatory variables, we choose cash flow rights, and separation degree of cash flow rights and control as explanatory variables, through multiple regression analysis, we found that:for China's private listed companies, the more cash flow rights of ultimate controller, the better performance of enterprise, cash flow rights and enterprise performance appear significantly positive correlation;two rights separation coefficient and enterprise performance has a significant positive correlation namely, the smaller the coefficient,the lower enterprsise value;If the ultimate holder also take the office of the chairman or the general manager is positively related to the performance of the company.further introduced virtual variable to distinguish direct and indirect listed companies for comparative analysis, the results show that, compared with direct, indirect listed companies have a higher negative correlation between two seperation degree and corporate performance,the ultimate controlling shareholeders infringe the interests of small and mediun shareholders high degree.Finally, according to the conclusion of the study, the author puts forward relevant policy suggestions:to strengthen and improve various listed company independence, reduce two rights separation; to improve the legal system, establishing an effective mechanism of supervision of listed companies; to promote the sound development of private enterprises, encouraging IPO of family enterprises;to support family founder. And in the end the paper pointed out the shortcomings existed in the paper and direction of further research.