The Causes And Economic Consequencesof Control Right Contest

Since the reform and opening up,the market economy of our country has developed rapidly and the scale of the economy is expanding.Under this national condition,the development of private enterprises in our country is changing with each passing day.After the split share reform in 2005,the circulation efficiency of the stock in the capital market is greatly improved.Although the capital market is more dynamic,the stock ownership structure of the listed companies is more diversified,but it also easily leads to the contention of control rights,and the control power contention often affects the normal operation of the company.Therefore,it is necessary to make our private enterprises develop more long and steadily,improve the internal governance structure of private enterprises in our country and strengthen the allocation of control right of private enterprises in our country.In this paper,a case study is taken,and the case is the control contention between the large shareholders of China's landscape cement group.The case of the control right of the landscape cement group is a case of the control power competition among the typical large shareholders in the private enterprises in China,and the case is of great practical significance.Therefore,on the basis of the theory of control right private income and the theory of stakeholder theory and so on,through the case process of the control right contending for landscape cement group company,this paper analyzes the causes of the contention of the control right of the landscape cement and the influence of the control right on the performance and the stock price of the landscape cement company.The conclusions are as follows:(1)the reasons for the contention for control are the results of the comprehensive effects of many reasons,such as the private benefits of control,the divergence of strategic objectives,and the imbalance of the allocation of control rights.(2)the struggle for control consumes the internal resources of the company,reduces the level of corporate governance,affects the stability of the stock price,and has a negative impact on the long-term development of the company.In this regard,some suggestions are put forward:(1)strengthening the supervision of the board of directors;(2)improving the independent director system;(3)establishing an effective equity balance structure;(4)the separation of control and management rights.I hope to give similar corporate governance to our private listed companies,and put forward some constructive suggestions.