Study On Influencing Factors Of Private Benefits Of Control From China's Listed Companies

Dominant shareholders control listed companies in china's highly concentrated stock market. Separation of ownership and control in this market leads to expropriation of the interests of minority shareholders and control premium to dominant hareholders. This paper analyzes the formation and background of private benefits of control.A detailed analysis about the essence of private benefits of control and control premium is based on the available literature, which includes the discussion of factors concerned with private benefits of control, such as legal environment, ownership structure, industry characteristics, and some financial indicators, from the perspective of macro-and micro. Then the empirical study of private benefits of control and the factors concerned is done on these samples of transferring share. The result of study shows that: Firstly, Private Benefits of Control is 13.1%; Secondly, in all factors, the greater the actual control, the more Private Benefits of Control; the more the proportion of tradable share, the less Private Benefits of Control; and Firm size, asset-liability ratio are negatively correlated to the Private Benefits of Control.The last is suggestions, including better ownership structure and governance of the listed company, more disclosure of information and legal protection on for the minority shareholders, and so on, to boost the investment and the healthy development of the market through the way of protecting the rights of minority shareholders.