Empirical Research On Control Premium Influence Factors Of Listed Companies

In the traditional theory of corporate finance, We generally think that all the company’s common stocks have the same rights and interests equally, each o shareholder have the same share equity, the rights and benefits of the share are the same. With the development of research on the securities market, it is discovered that the big shareholders not only can enjoy the benefits which general shareholders can enjoy, but also they can enjoy more benefits than the small and medium-sized shareholders, and only the large shareholders can enjoy these benefits, medium-sized and small shareholders can’t enjoy them. This is the private benefits of control. In order to get this kind of private benefits, big shareholders must get the control of the company. In order to obtain the control rights, the controlling shareholder need to pay more additional cost, which is produced in the process of control transfer premium. At present, many scholars at home and abroad have do many theoretical and empirical research about control premium, the concept of control premium has been the one of core concepts in corporate finance and corporate governance.Foreign scholars have do many studies on control premium, and make outstanding contributions in many aspects. In the domestic, as the capital market in our country is not perfect enough, many scholars put forward their own views and opinions on the basis of theoretical research of foreign scholars, apparently in the study, there are a lot of shortcomings, it will need to continuously improve and deepen.In this paper, on the basis of theoretical research, we choose Shanghai and shenzhen’140listed companies which have happened control transfer as the research sample, we make control premium which produced in the process of shift control as the research object, and elaborates the methods to measure control premium, influence factors were analyzed, and carries on the empirical research on these factors, and hope these theoretical research can make a contribution to the development of Chinese stock market.This paper mainly find factors that influence the control premium from the internal and external, enterprise internal factors include the quality of the degree of controlling, the shareholder can get how much controlling, and other internal factors that will affect the control premium. External factors include legal environment, policy environment, the listed company’s shell resources, the enterprise geographical position, the resources of the local conditions, traffic conditions, regional advantage and sustainable development ability and so on. Due to some factors cannot be measured by quantitative indexes, so the author makes an empirical analysis mainly from internal factors. After descriptive statistics and regression analysis on the sample data, the author draws the following conclusions:(1) from the financial factors of the target company, the company that have great solvency and profitability, the company’s largest shareholder has the ability to get higher rates of self-interest, control premium will be higher. But the operation ability of the company, internal control is also very perfect, the corporate governance level is higher, big shareholders will be hard to obtain self-interest, so the control premium will be lower.(2) If the target enterprise have big scale, on the surface, the financial management ability may be better, but the supervision and attention from the government, institutional investors and all aspects from the social will be more, the enterprise of the regulation will be bigger, the controlling shareholders want to get more personal income will be more difficult, so the bigger scale the enterprise is, the the lower premiums the controlling shareholder is.(3) the size of the controlling shareholder of target company control is largely affect the control premium, the stronger the controlling, controlling shareholders get more consumption on-the-job and various physical intangible privileges.In order to get this kind of interests, the controlling shareholders are willing to pay more cost to achieve the control. However, if there are other components shareholders, the controlling shareholder’s private benefits will not be available,the controlling shareholder is not willing to spend so much cost to obtain the controlling power.