Research On The Effect Of Ultimate Contontroller To The Financial Risk Of Private Listed Companies

Since the concept of the ultimate controller has been put forward, the ultimate control had been made the general concern of the scholars at home and abroad. The separation of the ultimate control of the control rights and cash flow rights increase the behavior of the "hollowing out" of listed companies to obtain private benefits, adding the company’s financial risk, the degree of separation of ownership and the company’s financial risk. And the greater the ultimate control of the control chain level, the more the company’s assets-liability ratio, the greater the financial risk.Therefore, this paper is to study the ultimate control of the financial risk, and mainly focus on the private listed companies, through empirical methods to test the impact of China’s private listed companies’ ultimate control of financial risks. In view of this study on the impact of private listed companies in the ultimate control of financial risks, the main contents are as follows:1) On the basis of the analysis of domestic and international research literature, this paper has analyzed and interpreted the concept of ultimate control and characteristics, and on the basis of theoretical analysis, based on agency theory and emptied theory to study China’s private listed companies financial risk.2) Carried out a detailed analysis of the current state of private listed companies’ financial risk. It is found that the degree of separation of the ultimate control and the degree of separation of ownership and ultimate control chain-level influenced the financial risk.3) This article draws on domestic and foreign financial risk research methods, selected by Z-score model. This model is used to assess the level of financial risk in private listed companies. This method avoids the traditional model of the popularity of only ordinary listed companies, financial risk assessment, but select private and listed companies as a research object, and provides a more sophisticated basis for the evaluation.4) This article first use of the EXCEL software to sort the selected sample, and then apply the statistical software regression analysis of data collected, the results showed that the model for the evaluation of China’s private listed company ultimate control of the financial risk affect the feasibility and goodness of fit strong. Regression results we can see the effect of a number of factors in the ultimate control of financial risks.5) The ultimate control of China’s private listed companies in the empirical analysis on the basis of the financial risk of some factors, from controller, financial risk, and regulatory aspects of the perfect ultimate control of the private listed companies’ financial risk countermeasures. Through the above analysis, this paper hopes the empirical methods to test China’s private listed companies of financial risk control ultimate the influence degree of each other and the related. I hope that can through the conclusions of private listed companies for later reduce financial risk used for reference.