The Value Of Company Under The Implicit Control Right Based On Private Listed Companies

In recent years, a series of event that listed companies’financial fraud was exposed in turn to bankruptcy caused by some problems in corporate governance has appeared one by one home and abroad, which caused many scholars home and abroad pay more attention to corporate governance and research and analysis.The core of corporate governance research is the research in control right. Control right of controlling shareholder is the basis of controlling the decision-making of major asset management and significant transactions of the listed company. No doubt, the size of control right will affect the decision of listed company through the behavior and decision-making appointing members of the Board or senior management. Thereby this will affect the value of the listed company.So far, many studies have shown that the ultimate controlling shareholder’s stake was correlated with the value of listed companies. Some believe that it’s a positive relationship, some negative, as well as some "U"-shaped. Based on the theoretical analysis on control right and the value of company, given the definition of implicit control, the control right to listed company of ultimate controlling shareholder through the pyramid shareholding structure and its acting in concert. Subsequent was given the theory of affection over the value of company of implicit control, on the basis of the analysis of affection over the value of ultimate shareholding ratio, of deviation and restriction. We select556samples from listed companies in Shenzhen Stock Exchange from2009to2011. Then, we carried out empirical analysis through descriptive statistics, correlation analysis and linear regression analysis. Concluded that there is a positive correlation between the implicit control right and the value of listed company, and a negative correlation between the separation and the influence implicit control right on the value of listed company, and a positive correlation between the restriction and the influence implicit control right on the value of listed company. At last, we proposed some recommendations point for the implicit control right after analyzing the affection over corporate behavior in this conclusion.