The Impact On Corporate Governance Of Control Right And Professional Manager System Over China’s Private Enterprises

With Chinese economic developing, reforming and opening up, Chinese private enterprises are growing. Private economy has permeated all aspects of our life. Nowadays, it is one of the major issues related to people’s livelihood how to effectively promote sustainable development of private enterprises.In the field of corporate governance research, the control right issue has been the focus of attention of many scholars. Particularly, the events of competition for the control right of GOME placed the problem in front of everyone. Why is there control right over the dispute? What does corporate governance of private enterprises, GOME, bring to us? How to protect the interests of corporate shareholder? How to strengthen the control right over the company founder or major shareholder? How to avoid "GOME strife"? This research can solve problem.In this dissertation, we make the control right of GOME, which is the research object, using normative research and case studies in order to reveal the private enterprises and the relationship between performance of corporate and the control right of private enterprises.This dissertation is divided into six chapters, the’key elements is as follows:In Chapter Ⅰ, I explain the reasons for choosing this topic, background, and a clarified solution for this study.In Chapter Ⅱ, I define the control right over the content, describing the control right over domestic and foreign related literature, relating the control right over the performance of the company and the impact of investment and development.In Chapter III, through the analysis of the specific situation of China, we put forward existing situation features and drawbacks about the state-owned enterprises and private enterprises.Chapter IV is the case part of GOME by describing the control right over the circumstances of the case; we give the root causes of its emergence and solutions.Chapter V is reflection and conclusion, which puts forward corresponding counterm easures.Chapter Ⅵ is the concluding part, pointed out the limitations and shortcomings of the article.The main innovation at the following three points:First, the paper pointed out by studying the case of GOME lack of regulatory system is the reason of battle on control right of GOME.Second, by combing the literature and case analysis of a large shareholder or founder to maintain control right of the company can better protect the interests of shareholders.Third, this paper proposes a selection mechanism of professional managers, contract mechanisms and incentives perfect countermeasures.This dissertation draws the main conclusions:Major shareholders or founders keeping control right of the enterprise are good for protecting the interests of shareholders better. In terms of the choice of professional managers, Chinese private enterprises should set strict selection mechanism, and should quantify competent and honest indicators for the assessment. Entrepreneur, founder or major shareholder should use proper model to achieve the control right. In terms of operation of capital, especially importing foreign capital, they should be prudent, and professional requirements should be increased. In the corporate governance system, through the improvement of independent director system, supervisor system and other systems ensure the control right of power, which stand for the interest of stakeholders.