Study On The Influence Of Ownership Structure Of China’s Listed Companies On Private Benefits Of Control

Abstract:The role of ownership structure in corporate governance has been a hot issue that arouses the concern of academics. In the case of imperfect market, the controlling shareholders damage the rights of minority shareholders by using their additional information, and then for personal gain, which restricts the healthy development of capital makets. How to fundamentally control the controlling shareholders’behavior which plunder of private benefits of control and then protect the legitimate interests of minority shareholders effectively become the focus of academic research.In China, the special ownership structure of binary makes state-owned shares to be only one big share. Controlling shareholders of listed companies have absolute control rights. The phenomenon that major shareholders gain personal benefits by using their control rights at the same time damaging the interests of minority shareholders is very serious. To solve this problem, China has started the non-tradable shares reform since2005. Non-tradable shares have been lifted.The era of full circulation of shares has been coming. Then after non-tradable shares reform is completed, does this phenomenon still exist? To this end, based on the unique features of ownership structure and control structure of listed companies in China, and on the case of controlling equity transactions in XinHuaLian with the completion of non-tradable shares reform, the influence of ownership structure of China’s listed companies on private benefits of control is studied combined with empirical analysis. The results show that nature of equity before changing, the share ratio of the largest shareholder, asset-liability ratio and ROE will have a significantly positive correlation with private benefits of control, while it will be negatively correlated with nature of equity after changed, equity restriction ratio and enterprise scale. Finally, we put forward some specific measures and policy recommendations according to the results of empirical research.