Research On The Impact Of Control Right Competition On Performance

With the continuous improvement of the capital market,more and more enterprises are going public,and the conflicts of control rights are frequently caused by the profit-seeking behavior of major shareholders or the different business ideas among shareholders.Whether the corporate governance structure,strategic direction or business performance,control right is a factor that cannot be ignored.Therefore,by sorting out the relationship between control right and performance,effective improvement measures can be proposed to promote the growth of listed companies and improve China's market for control right.Although China came into contact with the event of competition for control rights later than the west,many conclusions have been drawn by scholars who have studied a large number of these events in recent years.Reading a large number of related cases can be found that Chinese scholars study the control for the event for more state-owned enterprises or similar vanke,gome,Shanghai jahwa,large listed companies such as control of other private listed companies competing for the event study is less,the private listed company also has a big proportion in the capital market,on its control for the event also need attention,.Therefore,private listed companies like Tibet nuodikang pharmaceutical joint stock limited co.are selected to sort out the process and causes of the competition for control rights,and then analyze the influences from market performance,financial performance and corporate governance,and finally draw their own conclusions.After analysis,it can be found that the secondary market recognized the competition for control rights,but the competition for control rights itself had a negative impact on the performance of Tibetan pharmaceutical industry.The main reasons for the struggle for control rights are as follows: 1.The business philosophy of investors and founding shareholders is inconsistent;2.The shareholding ratio of the two major shareholders is close;3.Independent directors do not play a supervisory role.Therefore,we can get several inspirations: 1.To establish a reasonable equity structure,we should reasonably allocate the shares of founders,management and external institutional investors to avoid the risk of competing for control rights.2.Choose investors carefully.Investors and founders share the same business philosophy,which is conducive to the better development of enterprises.3.Strengthen the role of independent directors and make professional judgment on corporate decisions.It is hoped that the conclusions and inspirations can supplement the research on the competition for control rights and provide reference opinions for corporate governance.