Empirical Research On Factors Of Control Premium Of Chinese’s Listed Companies

In1989，Barclay and Holderness put forward to the existence of the differencebetween the block price and the exchange price. Since then，more and more scholarshave carried out researches for this phenomenon. From the beginning of this century，Chinese scholars begun to study the control premium，the number of the scholars whodo research on the control premium is increasing，and the research about influencingfactors of the control premium has become an important research direction.,Because of the coexistence of non-tradable shares and tradable shares，Chinesescholars used ROE instead of shock price to measure control premium level beforereforming of the shareholder structure. And more and more Chinese scholars didresearch on influencing factors of the control premium.To see the consummation of tradable shares reform in China as an opportunity，this paper measure control premium level with shock price index to reflect the truelevel of control premium. On the basis of the measuring of control premium index，this paper does research on the influencing factors of the control premium. Takingother scholars’ researches into consideration，this paper does empirical researches onmany influencing factors of the control premium. Other scholars have studied thedifferent factors of the control premium. This paper summarizes the different factorsand verifies the empirical relationship between the control premium and factors of thecontrol premium.Compared the B-H with the model proposed by Bai，Liu and Song(2002)，thispaper choose the model proposed by Bai，Liu and Song（2002） as the modelmeasuring control premium. This paper tests the overall level and influencing factorsof control premium in China’s list companies based on2009-2011annual publicreports. Then，this paper made conclusion as follows. It proves that control premiumstill exists after reforming of the shareholder structure. The yield rate of controlchange is37.77%higher than the yield on stock market. The ownership concentration index and the equity multiplier have significant influence on the control premium.Industry factors，the liquidity of circulation stock corporate size，financial status，theclosing cash and short-term investment，financial status，holding proportion of thetransferee and the nature of the transferor have no significant influence on the controlpremium.