Research On The Control Of Competition Under Dual Capital Control Chain

In recent years, the situation of struggling for the corporate control right between the founding enterprises and the institutional investors is very common in China. In the process of enterprise development, it is inevitable to carry out financing. Institutional investors get some voice and voting rights in the general meeting of shareholders through the way of investment. The founder of the enterprise has a natural protection for the control right. They want to hold the control right by themselves. The institutional investor began to actively participated in the corporate governance,after they found they can get more revenue in this way. So, the contradiction between the two sides determine the inevitability of the struggling for the corporate control right. In the face of the problem, the founding enterprises can solve this problem by the equity capital control chain like cross-shareholdings or pyramidal ownership to became the company’s ultimate shareholders and grasp the company’s actual control. Because of the particularity of the traditional culture background and the social environment, analysis only by the equity capital control is not comprehensive enough. Social capital also plays a vital role too. Analysis from the perspective of social capital control chain, social capital is the social relations network. It is the position where the shareholders are in the social which bring the interests of resources. In the process of struggling for the corporate control right the social capital has a good complementary effect for equity capital. Sometimes, it can play a decisive role in the replacement of equity capital. It needs us to analysis hardly. A rational governance structure can help the company to avoid the struggling for the control right. Dual share structure and the "partner system" which is popular now can solve this problem well.Taking Alibaba group as the main research object, this paper analyzes the struggling of control right in the process of the development of Alibaba. A detailed analysis and discussion on the struggling process of control right from the perspective of dual capital control chain of equity capital and social capital. In addition, it also focuses on the influence of the partner system of Alibaba on the struggling of control rights. Provide some methods to solve these problems for the other founding enterprise that has financing needs through the research and the analysis. Provide some effective policy recommendations to improve the corporate governance structure of our country...