Analysis on Deviation of Ultimate Controlling Right from Cash Flow Right and Influence on Chinese Enterprise Performances

摘要

This article studied the problems in privative corporate governance. The deviation of ultimate controlling right from cash flow right is a distinct feature of listed companies in China. The paper first defined ultimate controlling right, analyzed the influence of its deviation on the corporate performance, finally probed how the ultimate controlling shareholders deprive small shareholders of their benefits. An empirical verification was conducted on data from some listed Chinese manufacture companies. Relevant solutions were suggested at the end.