Research On The Configuration Of Financial Rights Of Control In Firm

The configuration of firm's internal rights is direct reason which effects firm's efficiency, and many economists and entrepreneurships make an effort to find the regularity of it in the uncertain market economy. On the one hand, the emerging firm theory raises the high tide around the world which limits in economics and has less discussion in the financial view. In a sense, economical deduce on rights of control can not get rational criterion for the efficiency of rights' allocation. Meantime, researching on corporate finance is in hot water. People make an emphasis on operative technologies and methods and ignore the hidden rights. On the other hand, take-over wave in developed countries, exposed financial scandal in star companies and the alteration of economical environment around world cause attention for rights of corporate financial control. In our country, under the compulsive systematic change the mechanisms of control rights can not work well. Thus, taking the listed companies for an example, this dissertation focuses on financial rights of control which links firm theory with corporate finance, aims to find the main reason of inefficient corporate governance in the view of financial rights. It has great significance in practice and value in theory.This dissertation is divided into six chapters. Chapter2 to chapter5 which aim to probe into general rule and build up a normative frame and analytical approach emphasize particularly on theoretic analysis. Based on Chapter2 to chapter5, Chapter6 develops a positive examine to Chinese listed companies.Based on current researches this dissertation studies the financial rights of control and try to get several innovations. (1)Summing up and abstract the current and partial definition of control rights, this dissertation gives a definitely connotative definition of financial rights of control which not breaks up the parochialism of traditional finance but upgrades researching footstone to basic economics so as to the theoretic and practical demands of financial research. (2)Different from current studies of control rights which stress on the economical and general discussion, in the view of finance this dissertation explores the main elements influencing the configuration of financial rights of control in firms sysmaticly, and analysizes positive and negative functions during the practical process of financial rights of control and provides the basic thought to find the theoretic optimal point. (3)Many researches ignore the significance of original configuration. Surveyed the origianl configuration of financial rights of control between owners and operaters in articals of assiciation of part listed companies, we conclue that the original configuration of financial rights of control in our country is orderless and blurry, which means more tranction cost during the fulfillment of the business contracts. (4)Most of current studies on control rights focus on structure of ownership and board of directors supposing that the mechanisms of financial rights of control are exogenous and less studies relates to the relationship among these mechanisms. This dissertation presents direct empirical evidence of interdependence among these mechanisms and endogenous relationship. This finding suggests that cross-sectional 2SLS regression of firm performance on single mechanism may be more persuasive than OLS regression and these mechanisms have common affect on the corporate value and the quality of accounting information.