The Exploration of Affecting Control Premium Factors

• Main Authors: Yin, Sz-Rung, 尹思容
• Other Authors: Shen, Da-Bai
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/71362526889619128071

碩士 === 東吳大學 === 會計學系 === 102 === The concept of control premium is mainly come from merger and acquisition, the acquirer has to pay premium higher than above market price in order to get the control power of controlling shareholder of the target company, because the acquirer can obtain additional benefit from getting control, thus the control power is valuable. Under the agency theory, the firm is impossible to promise beforehand in all authorize matters on the contract, that is due to the contract is not complete, therefore, the controlling shareholder own the residual right of control to violate the right of minority shareholder, the purpose is to get the private benefit from the control, thus the acquirer is willingness to pay higher price to gain the control power, this is the control premium we discussed in this article. Existing research of control premium in Taiwan mostly focus on domestic and international comparison of the level of control premium, or the attribution of control premium from legal perspective. Thus, we use the empirical research in public tender offer to study the factor affect the control premium. According to the result, the control premium is significantly related to company size, debt ratio and corporate credit risk, whereas it shows no significant related to the company profitability and the shareholding proportion of the controlling shareholder.