Research On Private Benefits Of Controlling Shareholders In China's 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 is the key of this problem.Chapter III introduced that the realization of the private benefits of controlling shareholders. The most common and direct means is to occupy funds of the listed companies, including directly occupying, borrowing contract, connected transactions and asking guarantee from listed company. Furthermore, they also use means of connected transaction to transfer resources and insider dealing, In addition, they prefer to equity financing and glossing over performance to help expropriating behaviors. They have done great harm to the development of China's capital market.Chapter IV analyzes the determinants of private benefits of controlling shareholder. And analyzes detailed from the macro and micro factors. Macroeconomic factors such as the legal system, market competition, industry characteristics, public media, government regulation, the level of taxation. Micro factors, including the size of the company, ownership structure, financial leverage, operating conditions, asset structure, dividend policy and so on. Based on Chinese listed companies by private benefits of controlling shareholders and measure the size of the factors that affect the multiple linear regression analysis, Explore the factors of the acts of controlling shareholder against the small and medium-sized shareholders.The result of empirical shows that the average of the private benefits of controlling shareholders is about 26.89%, which is near to that of the emerging market country, but higher than that of the developed market economy country; the private benefits of controlling shareholders is negatively associated with the size of the company, profit position; There is a positive correlation between the proportion of the assignment of equity, the proportion of shares in circulation, the rate of assets and liabilities, cash flow, the proportion of shares in circulation and the private benefits of controlling shareholders.