A Quantitative Study On The Value Of Private Benefits Of Control

Some evidences show that the controlling shareholders usually gain extra benefits by virtue of their control power of stock. Overseas academic research defined those benefits as private benefits of control, which are obtained by the controlling shareholders and are not shared by other shareholders.Based on the unique two-dimension structure of stockholder's equity in China stock market, the author firstly analyzes the approaches of controlling shareholders' realization of interests as well as the ways to encroaching upon the interests of average shareholders. The author further divides the private benefits into two parts: the dominant private benefits and recessive private benefits. This paper studies the case of "Stock for Debt" of Dian Guang Chuan Mei and measure the value of private benefits in this case.Furthermore, the author probes into the background of "Stock for Debt", and the strengths and weaknesses of the form, and puts forward some suggestions. Simultaneously, a contrastive study on "Stock for Debt" and Stock Repurchase has been made between the home and the abroad from the perspective of the nature, the laws and regulations.