An Empirical Study on Relationship Between Information Disclosure Quality and Excessive Benefits of Control

摘要

The researches of excessive benefits of control are reviewed firstly. Then based on negotiated control transactions during 2005 to 2007 in Shenzhen Security Exchange, the paper tests the relationship between information disclosure quality and excessive benefits of control. We find that the excessive benefits of control is negatively related to average disclosure quality during the transaction period, and statistically significant at 10 percent; and it is positively related to the index of ownership restrictions to ultimate controllers, and statistically significant at 1 percent. The result is that supervision of information disclosure during the control transactions, and establishing a structure to constrain the ultimate controller is important to lower the degree of excessive benefits of control.