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China's Listed Companies Against Other Investors, The Controlling Shareholder

Posted on:2008-06-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y D ShenFull Text:PDF
GTID:2199360245983647Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
The problem of the expropriation of the controlling shareholder has been paid much attention by people involving in research on corporate governance recently. Although there are many research results, we can not understand the problem thoroughly, let alone resolving it. So, the author try to figure out the degree the controlling shareholder expropriate other investors, to identify what factors perform some influence and to find out through what ways the controlling shareholder achieve the goal.At first, the author concludes the past research results and put forward one model that includes 8 influencing factors. They are the percentage of share, the scale of debt, the scale of net assets, the strength of supervising, the power of punishing, the ROA, the ratio of expropriating and the P/PE. The model illustrates what factors influences the expropriation of the controlling shareholder positively or passively. Second, the author will figure out the excessive benefits of control to tell the degree of expropriation of the controlling shareholder. The result sates that the average excessive benefits of control per share is 21.66%. The average ratio of the excessive benefits of control is 6.84%. Then, the result of the regression is that the average ratio of the excessive benefits of control is positive to the debt ratio and negative to the percentage of others' share, the ratio of independent directors and the total number of the director board. The result is statistically significant. Third, the essay describes the ways that the controlling shareholder expropriates other investors. And two models are use to explain the reason. At last, the author put forward some suggestions about corporate governance basing on the above reasoning and empirical result.
Keywords/Search Tags:Listed Company, Controlling Shareholder, Expropriation of Controlling shareholder, Excessive Benefits of Control, Corporate Governance
PDF Full Text Request
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