The Empirical Research On Affecting Factors Of Controlling Stake Premium In Listed Companies

It is widespread that controlling shareholders of listed companies occupy minority shareholders.Foreign scholars have been concerning about this issue since long and they held stake premium into share gains of all the shareholders and the exclusive private income of controlling shareholder.Although they have made certain outcomes in terms of the metric and the factors on control premiums and other studies,the research on the assessment of control premium is still a difficulty in academia and practical circle.Chinese scholars started to study on control premium even much later.In reality,most of the evaluation report did not disclose the premium generated by controlling stake.Therefore,controlling stake premium has not been estimated effectively in most cases.This paper initially analyzes the theoretical background and the basis of a controlling stake and makes a detailed analysis of the controlling stake premium.Then,from the macro and micro perspective,the paper analyzed the controlling factors affecting premium levels qualitatively.This paper focuses on the effect of micro factors on controlling stake premium,including ownership structure,company size,transfer ratio and financial characteristics of listed companies etc.furthermore,the paper selected 128 companies as samples for empirical analysis from those companies whose largest controlling shareholder were changed from 2009 to 2014.The results showed that:Among all the factors of affecting controlling stake premium,the actual control,the bigger the actual controlling power is,the higher the controlling stake premium is;the size of transaction and the company were positively correlated with premium levels,while profitability and solvency was significantly negatively correlated with premium level.Finally,based on the analysis,some recommendations will be put forward to restrict behaviors of major shareholder and maintain the order in the stock market.On the basis of empirical research on controlling stake premium,the paper aims at offering help to assessing premium reasonably,supplying references for the listed companies whose controlling stake transfer in the process of value assessment.And it is even more important to provide references for unlisted mergers and acquisitions and the transfer of private equity.