Ultimate Control Rights,cash Flow Rights Effect On Corporate Performance

Listed companies as an important participant in the securities market,corporate performance will have an important impact on their own development and stakeholders decision-making.Corp orate governance is the core of modern corporate system operation,the gradual improvement of information disclosure system provides a good foundation for our research on governance structure of listed companies.As one of the core problems of corporate governance theory,control right can dominate the company's resources and decide the strategic direction of the company.The concept of ultimate control first proposed by La Porta(1999),after then the domestic and foreign scholars use this view,research on the agency problem not only to the first big shareholder as the research object,but to find the ultimate controller at the end equity control chain.Scholars with the perspective of ultimate control,cash right and separation of two rights analyze the impact of ownership structure on corporate performance.Because the ultimate control rights is generally greater than the cash flow rights,the ultimate controller in order to obtain personal self-interest,will use their own control,against the interests of small shareholders,thereby affecting the performance of the company.Some scholars study the impact of ownership structure on corporate performance from the perspective of family business,some scholars study the impact of ownership structure on corporate performance from the perspective of private enterprises,the conclusions are not the same.This paper takes the cross section data of all A shares listed companies from 2013 to 2015 in Shanghai and Shenzhen Stock Exchange as the research object,First of all,to sort out the results of previous studies,and then through the re Levant theory for the study of the solid foundation,followed by empirical research.By selecting variables,descriptive analysis,correlation analysis,and then the establishment of regression model to study the ultimate control rights,cash flow rights and the separation of two powers on the corporate performance.The results showed that cash flow rights and corporate performance showed a significant positive correlation,that is,the higher the cash flow rights,the better the corporate performance;The relationship between ultimate control and corporate performance is affected by the nature of the company,in the state-owned enterprises,the two have a weak negative correlation,while in the non-state-owned enterprises,the two are becoming significantly positive correlation;The separation degree of ultimate control rights and cash flow rights has a significant negative correlation with corporate performance,that is,the higher the degree of separation of the two rights,the worse the corporate performance.In the sub sample descriptive statistics found that,compared to the state-owned ultimate holding listed companies,private ultimate holding listed companies have higher two rights deviation.Finally,on the basis of empirical research,this paper puts forward the corresponding policy recommendations from the supervision of listed companies and the protection of minority shareholders.