A Study On Private Benefits Of Control: Theory And Evidence From Chinese Listed Companies

The traditional theory of the market for corporate control lays particular emphasis on effect on the corporate performance caused by the control transfer. Recently, the research proves that most countries possess a lot of corporate of concentrated ownership structure. Private benefits of control have already been the core and stress of the study literatures of corporate finance and corporate governance. How to curb the expropriating behavior of controlling shareholders is a worldwide problem now.First, theoretical analysis framework of Private benefits of control was designed and the main literatures about the estimation and influential factors of Private benefits of control were reviewed and commented; Second, the contractual theory of the firm, the agency theory and the corporate controlling theory were first introduced and remarked, on the basis of the theoretical analysis, from the angle of cost-benefit, the last part of this paper take model and empirical study on the private benefits of control and put up multi-element linear regression analysis on its influential elements. The thesis estimated the Private benefits of control level, analyzed the Private benefits of control size and its major characteristics and therefore primarily discussed the effect mechanism and degree of the major influential factors considering corporate characteristics and internal governance mechanism. The result will provide theoretical support and policy advice to further standardize and perfect the corporate governance of Chinese listed companies.Two results were found out that: (1) on average, the value of Private benefits of control among Chinese listed companies is about 26.66%, a relatively high level after evaluating. (2) In a whole, the company characteristics and the stock transfer characteristics have strong interpretation to Private benefits of control.