Founder And Investor Fight For Control Of Multiple Case Studies

In recent years, the phenomenon of the fight for the control of private enterprise has been seen very often. Gome, NVC, Wahaha are recent typical cases of this phenomenon and attracted wide attention of Domestic and foreign scholars. The paper use the competition of Control based on social capital as the breakthrough point, to Summarizing the basic sequence of thought of the competition of control of the Gome, NVC and Wahaha. Exploring the meaning behind the control rights contest and Analysis the Similarities and differences between the cases. In order to found out the reason of contest of control between founders and investors, the role Social capital played in the contest for the control, the Similarities and differences between those three cases I used the norm research and multiple cases study In paper.Through the analysis of cases of Gome, NVC, Wahaha, Finally I found that the main cause of the contest of the control power is the rapid expansion of enterprises without control. And the three companies although has the same problems the Contradiction of principal-agent, the founders has the main social capital and the Social capital’s structure is similar and the control power is highly centralized. The mainly difference of three cases is mode and process of the contest of control power. At last in order to avoid the control power dispute between founder and the investor, the founders of company should reasonable choice and detail plan the mode of financing during the time of financing decision. And pay enough attention to control rights. In order to nip in the bud the problem of the control power contest, the outside investors should fully consider the negative impact of the founder’s social capital in the process of investment.