Studies on the Effect of Private Benefits of Control on Corporate Investment Behavior

With samples of companies with control rights transferred from the year 2005 to 2007, this paper utilizes a multiple regression model to examine the effect of private benefits of control on corporate investment behavior. The empirical study results show that private benefit of control is positively correlated with the corporate fixed assets investment scale, where the higher the private benefits of control increases, the larger the corporate fixed assets investment scale becomes. It reveals that the company will increase the investment scale in order to obtain more private benefits of control. Therefore, the private benefits of control will affect corporate investment behavior.