Study On Ultimate Controller’s Seizing Benefits Based On Debt Structure

Since the90s of the20th century, ownership concentration phenomenon makes the existence of controlling shareholders and business partners who have the motivation to share the interests of small shareholders.This makes the focus of corporate governance from resolving the contradiction between shareholders and management to resolve the contradiction between shareholders/managers and small shareholder.Ultimate controller, as the ultimate controller of listed companies, it is in top of the controlling chain, and it has the Features-separation of control and cash flow rights (ownership), which makes it has stronger motivation to occupate the interests of the company tha others.Some scholars have study the factors which can influent the occupation from the company’s internal and external governance structure,and several scholars has study that debt contract also can influent the occupation through evidence. This paper which studied the controlling shareholder occuping the interests of listed companies is based on the model of LLS V. Two variables about separation of ownership, the debt structure and the ultimate controller features, add to the original model.The results shows:the more long-term debt, the stronger the effect of the constraining; the more the priority debt, the stronger the effect of the constraining;the more the public offering debt, the stronger the effect of the constraining; The greater the separation of ownership, the more the occupation.Then, the article also collect data to conduct empirical analysis, The conclusion shows:In the significance level of10%, not the more the long-term debt, the stronger the effect of the constraining; the more the priority debt, the stronger the effect of the constraining;not the more the public offering debt, the stronger the effect of the constraining; The greater the separation of ownership, the more the occupation.Through this research, different debt has different constraints, in particular the priority debt. In addition, the more the ultimate controller of the greater degree of separation of ownership,the more to seize the benefits. This provides reasonable conditions for regulating the structure of debt financing and regulating the structure of ownership.