Analysis Of Supply-chain Model Of Corporate Control Right Under Equity Financing

Faced with good market opportunity, a capital-constrained growth enterprise commit to win financing to capture develop opportunity is the way it must follow. With the flourishing development of private equity investment fund, equity financing is becoming one of the most important powers to push enterprises forward. The domestic enterprises show us that they prefer equity financing to debt financing. However, company's fast development under equity financing often calls out the loss of enterprise control right. Investigating the factors that influence the allocation of profit and control right when growth enterprises attract equity financing, finding out conflicts and rules of equity financing from the perspective of supply-chain, providing enterprises with decision foundation, may be meaningful.In this thesis, author started from the perspective of growth enterprise attracting equity financing, investigated control right allocation problem in equity financing when enterprises played different roles in a supply-chain. Firstly, chapter one figured out the control right conflict when growth enterprises attracted equity financing in reality world. Secondly in chapter two author combed previous literatures in related fields that domestic and foreign scholars have published, and pointed out the value of this thesis. Then chapter three and four started from the perspective of retailer and supplier respectively, investigated the optimal decision in equity financing, probed the influence of valuation and utilization of funds on the enterprise's control right in equity financing. Further, through introducing leader supplier and follower retailer, this thesis investigated the allocation of enterprise control right under supply-chain cooperation. And in chapter five, author compared the equity financing decision of supplier and retailer, which played different roles in a supply-chain. This chapter investigated the impact of different roles in supply-chain on equity financing decision.Research showed that equity can accelerate the development speed of an enterprise. But enterprises that develop very fast are more likely to lost their control right. Valuation would affect the distribution of both sides' profit and control right. The role an enterprise plays in a supply-chain would influence the result of equity financing under supply-chain cooperation. “Hitchhiking” was widely exist in equity financing when considering supply-chain cooperation. This thesis has enriched the connotation of supply-chain finance and provided growth enterprises with decision reference.