A Study On Private Benefits Of Control And Its Governance Research-the Shanghai And Shenzhen Stock Listing Corporation As Example

In recent years, further researches in corporate governance have been done.Thecore of these researches has turned from lawful internal management to thedistribution of interests between controlling shareholders and non-controllingshareholders,including the agency problem.For this reason, Private Benefits ofControl(PBC) is becoming a important hotspot of corporate finance.This paper first presents some theoretical viewpoints and backgrounds related toPBC in order to show the process of the PBC to be fund and focused on.This paperfollows the change of researches on PBC,and willing to make some contribution tothe development of PBC.Secondly, this paper defines the related concepts of private benefits, summary ofthe domestic and foreign research summary review, including the private benefits ofcontrol concept, measurement method, influence factor analysis. Through thecollation of relevant literature and review, we study the relationship between the angleof the ownership characteristics and private benefits of control.As the research foundation, the author makes an empirical study on the privatebenefits of control rights from the Shanghai and Shenzhen two stock markets. Theauthor chooses some samples from the Shanghai and Shenzhen A shares inaccordance with the terms of the listing Corporation, a total of32cases. The authorextracted the first shareholders equity ratio, capital structure factors, the managementcosts, the proportion of tradable shares, the level of profitability, company size andgrowth ability as data variables. Then extracting the relevant financial data andvarying by using SPSS17.0to analyzing these data. Based on the linear regressionanalysis, we can draw the conclusion of research: the private benefits of controlis positively correlated with the first shareholders equity ratio, capital structure factors, the management costs, the proportion of tradable shares, the level ofprofitability;the private benefits of control is negatively correlated with companysize and growth ability is inversely proportional to private income.Finally,this paper makes empirical analysis combined with the actual situationof China capital market.The research results indicate that, the problem of private benefits in Chineselisting Corporation is quite serious. And the company ownership structure provides anopportunity for the private benefits of control, this. This paper puts forward somepolicy recommendations about the development of capital market conditions,including the body improve shareholder balance degree; debt restraint mechanismshould establish more fully, play a role in corporate governance of debt financing,should also explore the public opinion and media publicity and supervision capacityetc.