Research On The Insider Control In Corporate Companies

As a special contract organization, corporate company's essential characteristic is the separation between the rights of ownership and the rights of management. This gives the rise of the question of principal -agent. Then the question of insider-control appears. During the process of the building up the institution of the modern corporate the problem of the insider-control is very usual, which brings about many problems needed to be acknowledged and solved. In this article we create a game model of insider-control in which we analyze the mechanism of the insider-control, we also put forward the inevitability, advantage and disadvantage of the problem of insider-control and we testify the conclusion by the case. In the end some probable ways are suggested to control its disadvantage.