A Study On The Impact Of The Stability Of Founder Control On The Return Of China Stocks Privatization

Early Chinese capital markets had high entry barriers,and had strict restrictions on the company's profitability and scale.Many companies that are unable to meet the requirements choose to land in overseas capital markets in order to obtain the benefits of financing channels and corporate governance after listing.With the growth and development of China's capital market,the policies of the domestic system are becoming more and more perfect,and the domestic industry is experiencing strong demand.However,the high cost of listing overseas markets and hostile mergers and acquisitions in operations have made Chinese stock companies' overseas living environment more severe.After careful consideration,many Chinese companies have decided to leave the capital market through active privatization,and some companies plan to re-list on the Chinese capital market.This behavior is called the return of privatization of Chinese companies.This article uses case analysis as the research method,and selects Mindray Medical's privatization regression as a research case to study how the founder's maintenance of the stability of control affects the return of privatization in China.Based on the theory of incomplete contract,principal-agent theory and social capital theory,this paper analyzes in detail the supporting factors and hindering factors of the founder's stable control right to the return of privatization of China Stocks,and establishes the founder's stable control of the Chinese stocks.A comprehensive analysis model of the effect of privatization regression,with a view to providing a reference for the Chinese stock companies that decide to return.The stability of the founder's control over the mechanism of the return of privatization of Chinese stocks can be examined from two aspects: support and obstacles.The support aspect is mainly reflected in the company's equity concentration,value estimation,reputation and competitiveness,and industry scarcity;Obstacles are reflected in the company's asset restructuring risk,debt risk,stock price fluctuation risk and market adaptability.In this article's specific case analysis of Mindray Medical,it is found that Mindray Medical's measures to maintain founder control meet the policy orientation and industry needs,and give full play to the heterogeneity of founder resources and the allocation of control rights to effectively control potential risks.Promote the return of privatization of Mindray Medical.Based on the above research,this article puts forward relevant policy recommendations for the two groups of Chinese stock companies and regulators.Specifically,for Chinese companies:(1)rational use of social capital to achieve optimal allocation of resources;(2)reasonable control of costs and effective prevention of risks;(3)cater to policy guidance and adjust corporate strategy.For regulatory agencies:(1)simplifying administration and decentralization,and expanding the scope of the registration system in a timely manner;(2)relaxing restrictions and promoting the promotion of the system of different rights in the same share;(3)opening capital markets and strengthening international cooperation.