Research On The Private Benefits Of Control Rights Under The Cross-border Acquisition Of Large Shareholders

The reform of the equity allocation in capital markets has completed,the non-tradable shares of major shareholders have acquired the right of circulation,as a result,there are more and more asset integration in the capital market.Listed companies can expand their scale and form economies of scale rapidly through enterprise acquisition.Cross-border acquisitions of enterprises can promote cross-industry integration of listed companies,improve the company's comprehensive competitiveness,and enhance their corporate visibility.While cross-border mergers and acquisitions bring the scale effect and diversification strategies,they also bring internal resource consumption and new business risks.On the basis of the high concentration of equity in listed companies in China,the main problems to be solved in this paper are as follows: Is the cross-border acquisition of listed companies effective in realizing the integration of different company resources? How to avoid major shareholders of listed companies from implementing cross-border acquisitions to achieve the hidden business trading,acquiring affiliates or occupying listed company resources to realize their private benefits of control?This paper uses the case study method to analyze the private benefits of control under the cross-border acquisition of large shareholders in listed companies.The article takes Pubang shares as an example,shows the process of its major shareholders cross-border acquisition of Internet companies Baosheng Technology and BoRuisaisi,the analysis of the private income realization process of control rights,and the reasons and impacts of the transnational acquisition motivation and control private benefits of Pubang Shares.It is concluded that the major shareholders of Pubang shares got the private benefits of control during the crossborder acquisition process.The study found that when the shareholding ratio of shareholders is high,through their control and information advantages in the process of cross-border acquisition,it is easy for the main shareholders to gain the private benefits of control from the listed company.The reasons for the realization of its private benefits of control are mainly the unreasonable equity structure and external supervision imbalance within the company.Through the process and impact analysis of the private benefits of the control of major shareholders,it helps to prevent the realization of the private benefits of control rights,better protect the interests of small and medium investors,and promote the healthy development of the securities market.