The Ownership, Control of Ultimate Controller and Firm Value
|School||Dongbei University of Finance|
|Keywords||ultimate controller ownership control right separation of two right firm value|
The central that a lot of understand behaviors of security market of our country is ultimate control right. La Porta et al first proposed the concept of ultimate controller, he point out that as the separation between ownership and control rights, when we analyze the issue of ownership structure, we should find the ultimate controller of enterprise through the chain of ownership, rather than simply to see the first major shareholder as the controlling shareholder. The control rights of ultimate controller often exceed their respective ownership in the company, which result in agency between ultimate control shareholders and small and medium-sized shareholders, andIn the presence of ultimate controller, what relationship the ultimate controller of the ownership、control right and firm value, how the separation of the ultimate control and ownership affect firm value, and the differences exist in the value of listed company controlled by different nature of ultimate controller. This study attempts to answer these questions.The paper select samples from 2007-2010 Chinese A-share listed companies in Shanghai security exchange and Shenzhen security exchange, and researches the above-mentioned issues through a combination method of normative study and empirical study. The result show that, ownership of the ultimate controller in the list company and the firm value show a kind of significant positive correlation, that is, the higher ownership,the more firm value; control right of the ultimate controller and the firm value show a kind of significant positive correlation, along with the increase of the ration control right, the firm value show a increasing trend; The separation of ownership and control right of ultimate controller and firm value show a kind of significant negative correlation, that is, the higher the degree of separation of powers, the worse firm value; And the performance of listed company controlled by non-state-owned is better state-owned. This paper was divided into five parts, the overall structural framework of this article is as follow:The first part is introduction; it mainly discussed the main research background and significance, the literature review, the main contents and methods.The second part is the related concept and theoretical analysis. Related concept include controlling shareholder, ultimate controller, ownership, control right and different nature of ultimate controller. The theoretical analysis part discussed how the ownership and ultimate control affect firm value, how the nature of ultimate controller affect firm value, and realization mechanism of ultimate controller obtain private benefits.The third part is study design, it mainly included the research hypotheses, research variables and sample selection, model, data sources.The fourth part is the empirical results, it is mainly on the sample data collected by research, design, make the validation process inspection and analysis system, and make reasonable explanation to the empirical results.The fifth part is conclusions and suggestions. In this part, we mainly reached some conclusions to the whole paper, and came up with some suggestions accordingly.