Research On Centre Testing International Groupand Its Subsidiary's Competition For Control

In recent years,public companies have widely used mergers and acquisitions to achieve economies of scale,but in the process,incidents of out-of-control subsidiaries have become more frequent.This article takes the conflict of control rights between CTI and its subsidiary as the research object,and uses a case study method,event research method,qualitative analysis and quantitative analysis to combine research methods to discover the deep-seated reasons for the out-of-control of the subsidiaries,and analyze the impact of the out-of-control of the subsidiaries on CTI.Finally,a policy proposal for corporate governance is proposed for this case,with the aim of providing reference for other similar companies and avoiding similar incidents.First of all,based on reviewing relevant literature on control competition,management incentives,and merger and acquisition culture integration,this paper introduces the concept of control and the theoretical basis of control competition,and discusses the general reasons for control competition in the company.It lays a solid theoretical foundation for the following.Secondly,it introduces the relevant information about the competition between control parties and analyzes the background of the competition for control.It shows that M & A is an important part of the development strategy of CTI.The process of contention for control rights was sorted out in chronological order,and it was found that the dispute over the shareholding ratio of the two parties was the root cause of the incident.The above provides sufficient factual basis for the subsequent analysis.Thirdly,this article analyzes the reasons for the outbreak of the competition for control of CTI,which is specifically reflected in the prominent problem of insider control of the subsidiary,the parent company has not yet established a complete incentive and restraint mechanism for the subsidiary,and the cultural integration after merger is not in place.In the subsequent analysis of the impact of the event,it was found that the competition for control caused the development strategy of the parent company to change from an extension-type expansion to an extension-and intension type development.This incident has a certain degree of negative impact on the company's finances,capital market value and future development.It can be seen that once the control contention event occurs,all aspects of the company will be adversely affected,and the internal stability of the company is vital to the company's health and long-term stable development.Finally,this article puts forward three enlightenments on preventing corporate contention.First,the use of the board of directors and the person in charge of finance to exercise supervision and checks and balances can reduce the control of insiders and prevent managers from competing for control;Second,improve the incentive mechanism of the management of subsidiaries at various stages of mergers and acquisitions,and strengthen restrictions on management behavior;Third,attach importance to the cultural integration after merger and acquisition from the strategic level of the enterprise,strengthen communication and establish a common vision.The ultimate aim is to supplement the research on corporate control through these conclusions and enlightenments,and to provide reference recommendations for corporate governance.