Research On Control Premium Influence Factors Of Listed Companies

In recent years,under the background of domestic industrial structure transformation,traditional industry upgrading,and emerging industry resource integration,the scale of mergers and acquisitions has grown steadily.So the high premium problem arising from mergers and acquisitions has also received increasing attention from scholars.At the same time,in the modern equity structure,the separation of ownership and control makes the first type of principal-agent problem between owners and managers which is a hot topic in the corporate governance research.However,with the deepening of scholars' research,it is found that due to the relatively concentrated ownership in China,the controlling shareholder's control rights exceed the cash flow rights,which leads to the second type of principal-agent problem,namely controlling shareholders and minority shareholders.Shareholders with control can not only have the benefits shared by all shareholders,but also the private benefits of control that minority shareholders cannot have.Therefore,in the equity transfer transaction,the trading price of the control right is generally higher than the common stock,thus a premium is generated during the transfer of control rights.At present,one of the research hotspots of corporate governance is the premium problem in the transfer of control rights.A reasonable measurement of the control company's premium level,and the formation mechanism and influencing factors,which can not only effectively control the irrational premium phenomenon,and protect the interests of minority shareholders,but also can enrich the theory of corporate governance.Based on the review of relevant theoretical foundations and domestic and foreign literatures,This paper screens 225 equity transfer agreements in which A-share listed companies transfer control from2009 to 2018,as a sample.Based on the premium measurement model,the time window of each stock price is revised.Through this measurement,the average control premium of the listed company is 14.38%.,which is lower than the control premium value of listed companies in China before 2008,but it is significantly higher than the premium level of Western countries.this paper focuses on the corporate governance perspective from the analysis of ownership structure,board structure,internal control quality,external audit quality and equity transfer ratio to discuss influence control premium.Concluded as follows: Firstly,the control premium has a significant negativecorrelation with the listed company's equity balance,board size,independent director ratio,internal control quality,and equity transfer ratio,which indicates that the control premium is more low when it is more high that the equity balance of listed companies,the board size,the proportion of the board of directors,the quality of internal control,and the proportion of equity transfer,so it can make more effective to suppress high premium problem in the transfer of control rights.Secondly,the control premium has a positive correlation with the equity concentration and separation of power between control and cash flow rights,but the regression results have not passed the significance test.At the same time,the control premium has no significant negative correlation with the audit quality of the external audit institution.According to the conclusions of this paper,it is proposed from two aspects: strengthening supervision and improving internal checks and balances.At the same time,this paper indicate the lack of research and the direction that can be further studied in the future are proposed.