A Study On The Effect And Its Mechanism Of Actual Controller With Oversea Residency On The Value Of Enterprise

While private enterprises are an important force in promoting China’s economic development after the reform and opening up, but because of the ideology and Government "grabbing hands" reasons, legal system of private enterprise’s property right protection is not sufficient;At the same time as some of the private entrepreneurs in the development of political relations, and even a few private entrepreneurs accumulated wealth by unfair means, forming what is called "original sin".This to some extent, led to some private entrepreneurs ’ concerns about the safety of their wealth, which China was the third overseas experience private entrepreneurs as the main migration flows.What entrepreneur immigrants impact on China’s economic development will become an important practical and theoretical issues.Such a practical and theoretical significance, however, it is also a very complex problem, it is essential for understanding the impact of entrepreneur immigrants to choose what kind of cuts into perspective and research methods.The latest progress in research on corporate governance brings enlightenment for paper cutting choices.Recent studies on corporate governance from the board size, the proportion of independent directors steer to the impacts to corporate governance of director of personal characteristics(gender, professional background, military service background)and actual control features(stock properties, political connections).Based on this,this paper from the angle of personal characteristics and background of actual control analysis the relationship of actual control of right of abode overseas private listed companies and corporate value(this indicates that private entrepreneurs have immigrant or has immigrant intent).And trys to reveal the right of abode overseas influence the company’s theory of mechanisms.According to that,the paper selects the Shanghai and Shenzhen A-share private listed enterprises between 2010 to 2013 as samples, combined with the research and immigration issues of actual controllers, as to focus on solving two problem as follows:1. what ’ s the relationship between the oversea residence right for actual controllers of listed private enterprises and the enterprise values;2.if any impact, what ’ s the main mechanism does it affect on the company governance mechanism.Empirical researching has suggested that: first of all,there is negative relationship between enterprise values and overseas residency owned by actual controllers of listed private enterprises.That is to say, private actual controllers of listed companies of migrants or immigrants tend to negatively affect the value of the enterprise, capital market makes a negative assessment. Then,actual control of equity ratio of actual control held by foreign right of abode and the negative impact of the value of listed companies regulation. Actual control of equity interests held by the higher proportion of, actual control of right of abode overseas, the more negative impact on the value of listed companies is weak. What’s more, overseas abode in actual control of private listed companies and listed companies ’ current assets ratio.Control who has the right of abode overseas private listed companies a higher proportion of liquid assets. Actual controller with a foreign right of abode will maintain higher proportion of liquid assets in order to increase the liquidity of its assets the ability to quickly liquidate, which facilitates the large shareholder to grab the interests of minority shareholders.In addition, the related studying in the passage is based on following three aspects of innovation: firstly, the paper expands and enriches the research of corporate governance,especially paying attention to the effects of the large shareholders on corporate governance. It has shown that, during the transition process of economy in China, actual controllers with overseas residency rights have adverse impact on private listed corporate governance. Secondly, the paper enriches articles studying on property protection. The overseas residency rights owned by the actual controllers reflect the concerns about the protection of property rights by private entrepreneurs in some degree. And the negative correlation between overseas residency rights by actual controllers and the value of enterprise has shown unfavorable effect on economic brought by the weak property protection of private listed companies. Thirdly, the paper points out the mechanism through which the actual controllers with overseas residency rights may influence the value of enterprises.