Research On Performance Of The Affliated Supporting Of Controlling Shareholder In Chinese Listed Companies

As the Share-trading reform successfully implemented on April 29, 2005, China's capital market entered into a total current era. The increased market value of listed companies could bring generous returns for large shareholders, prompting them focus on investment income and dividends brought by stock prices rising, and making them actively inject resources to the listed companies. The existing literatures on affiliated supporting are often around "tunneling theory" and "supporting theory", and are widely considered the controlling shareholders (this article limits affiliated parties to controlling shareholders) support listed companies mostly holding motives of "first transfusing blood then drawingblood", those supporting behaviors are unfavorable to the company's development. In fact, when controlling shareholders hold larger shares, they get more returns and tend to "support" listed companies based on whole interests or future long-term yield, which is favorable to increasing companies'value.Firstly, this article defines affiliated supporting behavior as the controlling shareholders injecting resources to the listed companies, based on the close relationship between corporate governance and affiliated transactions, this paper maks a detailed definition about them, and combs related literatures; Secondly, analysing the current situation of corporate governance and affiliated supporting with charts and forms clearly; Then making an empirical study on effect of affiliated supporting from the controlling shareholders, making further discussion on the influence of the share ratio of the first shareholder, equity concentration and ownership restriction such three shareholding structures on the affiliated supporting, then dividing controlling shareholders into state-owned and non-state-owned , and dividing the share ratio of the first shareholder at 20% and 50% point into absolute holdings, relative holdings and scattered holding, examining the economic consequences of affiliated supporting under state-owned and non-state-owned of controlling shareholdings and above three intervals, thus pointing out effects of equity structure; Finally, putting forward.conclusions and policy suggestions.This paper analyses the value effect of affiliated supporting from the ownership structure. Through an empirical study, the results show that affiliated supporting appears "conveying profits", which increases the firm's value. In the part of the effect of ownership structure: when controlling shareholder is the state-owned one, tending to improve the firm's performance through affiliated supporting behavior; There exists affiliated supporting behavior afforded by controlling shareholders under the two structures of absolute holdings and relative holding, thus improving firm's value; But in the equity dispersion,there is no significant relationship between affiliated supporting and firm's performance.The research shows that the appropriate concentration of equity will become the future trend of ownership structure. The findings not only help us understand the importance of affiliated supporting theoretically and objectively, but also exist significant meaning in standardizing the affiliated supporting of controlling shareholders and improving the transparency of companies' information.