Research On Relationship Between Private Benefits Of Control And Performance In Chinese Listed Companies

As the research in the field of Corporate Governance deepens, the role of controlling shareholder has attracted more attention, the core issue in corporate governance has been shifted to the question that how to deal with the agent problem between controlling shareholders and non-controlling shareholders. Private Benefits of Control (PBC) is the key of this problem.Large amount of researches have been done by Chinese academics, which represents about the problems of controlling shareholders obtaining benefits from control right. Some empirical researches of those have shown that the private benefit from control obtained by controlling shareholders in Chinese listed companies is vast and the conclusion of controlling shareholders expropriating the benefit of minority shareholders through seizing private benefit from control is provided. The more PBC, the worse influence of firm value and firm growth. So, restraining private benefits of control and then improving the performances of the enterprise aren't only for solving the problem of corporate governance but also the key points of advancing the capital market developing prosperously. The paper uses both theoretic analysis and demonstration to research the relationship between private benefits of control and company performance. The goal of this paper tries to find out the inherence relationship between them.There are six chapters in this paper. The introductory remarks are in the first chapter which mainly analyzed the meaning of this research, current researches related to this issue at home and abroad and new points of this paper. The second chapter briefly analyzes the company manage theory of modern corporation. The third chapter expatiate the theory of private benefits of control. The fourth chapter analyzes company performance. The fifth chapter analyzes the relationship between private benefits of control and company performance of listed companies, which covers debt refund ability, development ability, operation efficiency and profit ability. The sixth chapter is the conclusion of the paper. In the four performance item of listed company, debt refund ability and profit ability have negatively correlated with private benefits of control. Development ability and operation efficiency don't have evidently correlation with private benefits of control.