The control rights, cash flow rights and corporate performance of the private listed companies in China

Substantial researches have revealed that divergence of control rights and cash flow rights of the listed companies has significant impact on the corporate performances. This paper uses sample of 246 private companies listed in Shenzhen and Shanghai Stock Exchanges. Through tracing the control chains to identify the ultimate controlling shareholders of the listed companies, the paper has examined the control rights and cash flow rights of the ultimate controlling shareholders and divergence degree of the two rights; and through empirical analysis, we found in the result as follows: in a private listed firm, the cash flow rights owned by the ultimate controlling shareholder have positive relations to corporate performance while divergence of control rights and cash flow rights is negatively related to significance of corporation performance.