Abstract
This study investigates the relationship between capital structure and the private benefits of control of listed Chinese firms. A sample of firms listed on the Chinese stock markets is used to estimate the private benefits of control. The private benefits of control are approximately 18% (on average) in China. There is a statistically significant negative relationship between Short-Term Debt (STD) and the private benefits of control. In addition, a positive relationship exists between Long-Term Debt (LTD) and the private benefits of control. Finally, a statistically significant negative relationship exists between total debt and the private benefits of control.
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