Control Right Transfer On Corporate Performance

As the market for corporate control is an important part of external mechanisms of corporate governance, the performance of Control right transfer has been a hot research topic at home and abroad. With the continuous development of control right market in China, the control right transfer has made a great progress in both quantity and quality. with the help of theoretical explanations and empirical research methods, we are going to find out whether the control right transfer can really bring about the performance improvement of company, and thus have a more rational understanding of the control market in China. Furthermore, this paper find out which factors can really influence the performance of listed control right transfer company. This paper can hopefully be used to improve the efficiency of current mergers and acquisitions, to help stakeholders face the mergers and acquisitions events with a rational attitude.In this paper, a combination of theoretical and empirical research is used. Firstly, this paper sums up the research literature of control right transfer from both China and abroad, then elaborated on the control right transfer theory, and analyze the influence factors of corporate performance. Eight financial indicators reflecting profitability, operating capabilities, growth capacity, equity expansion and access to cash capacity are selected and factor analysis to calculate the integrated score of performance. The first part of empirical research selects listed company of 2006, using the method of regression; find out that the control right transfer improve the performance of the company. Then bring out the factors affecting the performance of company of control right transfer, multiple regression model are established to test factors of control right transfer impact through 84 listed companies. The main conclusions are drawn as follows:1) the control right transfer can improve corporate performance; 2) premium rate, the way of control right transfer, the ratio which the first shareholder and the second shareholder hold, whether the managers hold stock, as well as if control right company lies in the develop area. These factors affect the performance of company after the transfer of control:the largest and second largest shareholding ratio, holding executives is positive for the performance of the company; the performance of the company after the transfer of control in the developed regions is better than the less developed regions; the way of transfer on performance of company is different, compared with conclusions drawn by the majority of studies, concluded that the free transfer is better than paid transfer; and after the transfer,the way of transfer,the nature of the controlling shareholder, whether the management changes, as well as whether or not occur the acquisition of the assets accompanied by the transfer of control right did not pass the test of significance, indicating that these factors did not have an impact on performance for the company after transfer of control.