| Corporate governance is the most important content in modern enterprise system. Corporate governance has two styles. They are internal corporate governance structure and external corporate governance structure. In a sense, a modern company's ability to maintain competition in the market dominant position, it depends largely on the effectiveness of the governance structure. Modern enterprise is different from traditional enterprise. The fundamental characteristic of modern enterprise is ownership and management separated. This requires that owners and operators in between the formation of a mechanism of checks and balances, and relying on this mechanism for enterprise management and control. This mechanism is the core content of corporate governance. The problem of insider control is accompanied by the establishment of modern enterprise system created a negative phenomenon; it is the root of modern corporate ownership and management separation.As a special contract organization,listed companies' 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 problem 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 generalize a large number relevant theoretical results 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 of listed companies in Jiangxi Province. In the end some probable ways are suggested to control its disadvantage. |
