| Since the end of the1990s, some academics represented by La Porta found in most of countries ownership concentration is more common and Listed company has an Ultimate Controller in a concentrated ownership structure. The control rights owned by the Ultimate Controller may probably exceed his cash-flow rights. They investigated the influence of Ultimate Controller’s cash-flow rights and control rights on firm performance by analyzed his control rights and cash-flow rights as well as the deviation of control rights and cash-flow rights.Learned from the researches of La Porta etc., this thesis attempts to investigate how control rights and cash-flow rights influence firm performance in the perspective of Ultimate Controller. This analysis relies on the sample provided cross-sectional data of561Private listed Companies controlled by individual or family as Ultimate Controller in Shanghai and Shenzhen Stock Exchange in the year of2009and2010and tests the links of cash-flow rights, control rights and firm performance in empirical method. Using return on assets (ROA) as a proxy for firm performance, this thesis put forwards three hypothesizes. The main conclusions are following:(1) cash-flow rights and control rights of Ultimate Controller (individual or family) are positively associated with firms’ performance;(3)there is no strong evidence that the deviation of cash-flow rights and control rights has negative effect on firms’ performance. |
