A Research On The Relationship Between Controlling Private Benefits And Corporate Performance

Most of the existing literature hold that the interests conflict between controlling shareholders and minority shareholders is rooted in the controlling private benefits.Namely,the controlling shareholders through related party transactions,excessive compensation,on-the-job consumption to encroach on the interests of minority shareholders and other investors,and these behaviors have completely negative impact on the value of the company.However,the focus of controlling power makes big shareholders have an incentive to supervise company's management,thus to some extent,can reduce agency cost,and improve the value of the company.Therefore,this paper argues that major shareholders obtain additional benefits are not all occupation of small shareholders,big shareholders should pass additional revenue to cover their personal cost,so it is necessary to redefine the private benefits of control components.Most current method to distinguish the private benefits of control from the cost compensation,enterprise competence theory,as well as small and medium-sized shareholders bearing perspective,and the author thinks that the above view ultimately can be attributed to fair.Therefore,based on �Equity theory�,divide the controlling private income into two groups: reasonable and excess exploration controlling private benefit.Firstly,prove the differences between the two groups.Secondly,we validate the correlation between two kinds of controlling private income and corporate performance,on this basis to find relatively fair controlling private benefits to all shareholders.In the 2007-2014 A-share listed companies as the research object,using SPSS19.0 to do the difference test,correlation analysis and regression analysis,validatiing the fairness of the reasonable and excess controlling private benefits.The main research conclusion of the article is: first,there is a significant difference between the reasonable controlling private benefits and excess controlling private benefits and in the company that has only reasonable private benefits,its performance level is significantly higher than that in the company that has exess private benefits.Second,reasonable private benefits of control and the performance is in "S" type curve related,but in the company that has excess benefits,with the increase of private income,the change of performance declines.In view of this,this paper proposes to strengthen the audit of the gain access of controllingprivate benefits and the standard information disclosure system,in addition,increase the intensity of punishment,and improve the system of voting and so on,in order to make more equitable distribution of residual income between the shareholders.