Research On Control Rights Competition Of Gome Co.,Ltd

Gome co., ltd's control rights competition in 2010 will deeply affect the professional managers and private enterprise's development. This paper analyzes its cause and results and the countermeasures. This will help private entrepreneurs to correctly understand Gome control rights competition, which may avoid that private entrepreneurs produce error influence on becomeing a public company and using professional managers in the company further development.In this paper, the method of case study is used. Referencing corporate control rights mechanism framework, the control rights competition of Gome co., ltd and the competition process are analysised. The research shows that the causes are that the control allocation and ownership structure don't match and that the client lost influnce in the company's important decisions and the client's interst is damaged because of the agents betrayed. Control rights competition process is shareholder activism embodiment. It is also the competition process of agents of shareholders and voting rights of shareholders. Its essence is Gome co., ltd's big shareholders and managers of a dynamic and incomplete information, cooperation and non-cooperative game. The focus of the control rights competition is the arrangment of the board of Gome co., ltd. Referencing corporate governance theory, I give the analysis and research of the deep root problem of Gome co., ltd's control rights competition. The analysis and research shows that Gome co., ltd pursues board centralism corporate governance because of the lack of protection system for shareholders mechanism and slid down insider control, because of principal-agency relationship agent adverse selection and moral hazard and produce client distrust of professional managers, understanding of the stakeholder theory Gome triggered by the crisis erupted about corporate governance is the centralized control of gome deep root competition.Meanwhile, by analyzing and studying the Gome control rights competition's bad influnce to Gome brand and investor confidence, I puts forward the suggestions to avoid such control rights competition.