Study On The Economic Consequences Of The Competition For Control Rights Of Shanghai Aj Group

In recent years,China's economy develops rapidly,and the economic scale also expands continuously.With the development of domestic capital market,the ownership structure of listed companies becomes more diversified,and the domestic capital market is more and more unstable;listed companies contest control rights and acquisition events are endless.The competition for control rights has different effects on the corporate governance structure and financial performance,which will also result different economic consequences.Therefore,in order to make our listed companies develop more steadily,it is indispensable to improve the internal governance structure of the company.This paper adopts the case study method and chooses the control rights contested event of Shanghai Aj Group as the research object.Based on the theory of stakeholder theory,information asymmetry theory and ownership structure theory,this paper analyzes the motivation of control rights contested event and the specific impact on Shanghai Aj Group by reviewing the whole process of the struggle for control of Shanghai Aj Group.Research shows that after control competition,Shanghai Aj Group has perfected its extremely dispersed shareholding structure and stabilized the company's shareholding structure.At the same time,the company established the actual controller and further improved the board of directors.However,the battle for control rights also caused abnormal fluctuations in the company's stock price and the performance,which affected the normal development of the company.Through the case study of Shanghai Aj Group,the following conclusions are drawn.First,the dispersion of ownership structure might not beneficial to corporate governance;Second,the competition for control rights can effectively improve the corporate governance level to a certain extent;Third,the battle for control rights will affect the stable development of the company;Fourth,the government's intervention in the contest for control rights can calm the incident as quickly as possible,which is conducive to the future development of the company.Based on these conclusions,three suggestions are put forward.The first is to establish a reasonable ownership structure,the second is to establish the actual controller of the company,and the third is to add anti-acquisition clauses in the company's articles of association.In this way,the company's governance mechanism can be further stabilized and the company's further development can be promoted.At the same time,I hope that I can give some opinions to China's listed companies with similar situations,and help them to improve their corporate governance mechanisms.