An Empirical Research on Capital Structure and Private Benefits of Control of Chinese Listed Companies

We estimate private benefits of control and analyze effects of capital structure on private benefits of chinese listed companies at overall and matching levels. According to the results, on average private benefits of control in China is about 18%, which is near to that in emerging market countries but much higher than that in developed countries. We also find that debt financing proportion, current liability proportion and other block share proportion have negative impacts on private benefits while controlling share proportion and tradable share proportion have positive effects on private benefits of control.