Research On The Value-Effect And Its Decisive Factors Of Corporate Control

No matter in developed countries or in transitiona l countries , the core functionof corporate control in corporate governance, corporate fina nce and even securitiesprice behavior in stock market are becoming the focus concentrated on by scholars,investors ,and regulatory departments of government. The fina ncia l decisions madeby actual controller of listed corporate according to their private control benefitsma ximizing object will bring about certain value effect in stock market. The valueeffect is not only dependent upon the control right structure and control situation ofcorporate, but also dependent upon the institutiona l arrangement and mecha nismrelated to corporate control. Based on the market reaction of China's listed corporate'scontrol event, this dissertation deeply and systematica lly analyzes the value effect ofcorporate control and its decisive factors. The ma in works I have done are as follows:First, this dissertation reviews the preva iling view points about corporatecontrol in economic theory, firm theory, corporate fina nce theory and corporategovernance theory in chapter two, build ing a theoretica l basis for the wholecorporate and constructing the logica l framework for empirica l studies of valueeffect of corporate control. In chapter three, this dissertation summa rize s thetheoretic and empirica l literatures on value creation topics under traditiona lcorporate control transaction mecha nisms such as merger and acquisition, and findsanalysis perspective and study approach by contrasting with the lately conclusionson private control benefit extracting behavior of inside controller. Secondly, thisdissertation chooses initia l public offerings ,right offerings, and dividend paying askey fina ncia l event, and applies quantitative method to study the value effect ofcorporate control in chapter four to chapter six respectively, and finds that theprivate benefit extracting behavior of controlling shareholders are the importantfactors that cause underpricing phenomenon among IPOs. At the mea n time, theprivate benefit extracting behaviors of controlling shareholders are also the importantfactors that lead to negative abnorma l accumulative return (CAR) among SEOs anddividend payout. In chapter seven, this dissertation adopts empirica l method toanalyze the influence on controller's private benefit extracting behaviors of corporateinternal factors such as ownership structure and corporate external factors such aslaw protection level. Fina lly, based on the conclusions obtained by empirica l studies,this dissertation brings forward some policy proposals on reducing private controlbenefit and promoting value creation level of corporate control for China's listed corporates.