Research On The Effect Of The Separation Coefficient Of Cash Flow Rights And Control Rights On Private Benefits Of Control

The traditional corporate governance theory is based on dispersed ownership and relationship and the principal-agent relationship between owners and managers-entrusted. However the dispersed ownership is not universal phenomenon.Many proofs indicate that the shares structure of the listed companies is very centralized,and exists ultimate controlling shareholders in the listed companies in many new market economy countries. Ultimate controlling shareholders can hold control rights exceed their cash flow rights in concentrated ownership structure.The deviation of the two rights would drive controlling shareholders to obtain numerous private benefits through violating minority shareholders' benefits if minority shareholders are poor protected.Under this background,research on the effect of the separation coefficient of cash flow rights and control rights on private benefits of control has important practical meanings.In order to analyze the influence of ultimate control,shareholders' cash flow rights and control rights on the performance of private benefits of control.Firstly,theoretically analyze the measurement and form of the separation of the cash flow rights and control rights,the influence factors of private benefits of control and the action mechanism of separation coefficient of cash flow rights and control rights on private benefits of control; Secondly,based on a set of transactions data of 77 China listed companies of controlling rights exchanges from 2005 to 2007,we measure private benefits of control and analyze it. And then,through control relations framework of 77 listed companies' yearly report forms to trace the control chain to find the ultimate controlling shareholder,and to measure the cash flow rights,control rights and separation coefficient,of the ultimate controlling shareholder.Thirdly,take 10 influence factors of the cash flow rights,control rights and separation coefficient and so on as a variable;analyze the effects on the private benefits of control.The empirical study indicates that the cash flow rights is negatively related with private benefits of control,control rights is positively related with private benefits of control,the separation coefficient of cash flow rights and control rights is positively related with private benefits of control.Finally,conclusion and summary of the full text were made.