Index Analyzing and Behavior Effect Evaluating of Controlling Shareholders in Listed Companies

In recent years 'the agency problem' among controlling shareholders and medium & small shareholders has become the focus of corporate governance reform in listed companies. The controlling shareholders are the most important risk undertakers in management and also the main forces to create profits. Hence, the only way to solve above-mentioned problems is to evaluate behaviors of controlling shareholders correctly and based on which to construct a consistent rule to protect medium & small shareholders. The profit structures of controlling shareholders decide their choice of actions. Starting from analyzing factors influencing the profit structures, this paper constructed the index system which evaluates controlling shareholder's behaviors, taking listed companies in China as samples. The result indicates that the index of behaviors of controlling shareholders in China is low and their behaviors will bring strong negative externality, which can be restrained only by constructing a series of systems to increase the cost of controlling shareholders "private profits"