A Study On Control Transfer And Corporate Financial Performance Of A Share Listed Companies Based On Ownership Structure

The equity separation reform had changed corporate equity structure andgovernance significantly. With the rapid development of China’s capital market， thecontrol right transfer is booming and becoming an important way for listed companiesto acquire new resources and synergy, expand their scales and finically improve theircompetitiveness.Control transfer of listed company in China is characterized by its late start andthe fast development. Since1992, the development of control transfer in China hasexperienced five stages in total. This paper mainly studies the development andcurrent situation of control transfer, and summarizes its problems.In the empirical analysis, this paper uses principal-agency theory, control theory,market efficiency theory, synergy theory to analyze the influence of ownershipstructure on the financial performance after control transfer and build hypothesis.Secondly, this paper uses factor analysis method to study the listed companies whosecontrol transfer happened from2005to2009. Then this paper uses the index tocompare the performance of different years and finds that control transfer has changedthe financial performance significantly and positively. However, the effect of financialimprovement cannot last long. Thirdly, this paper uses4regression models to analyzehow ownership structure influences the financial performance after control transfer,whose result indicates inverted U curve relation between the ownership concentrationand the financial performance, and between the degree of equity restriction and thefinancial performance. Therefore, this paper finds that appropriate equityconcentration and reasonable degree of resection helps to improve the financialperformance of the target company after control transfer.