The Impact Of Social Capital And Institutional Environment On Corporate Control Rights

In recent years,with the wave of mergers and acquisitions,The invasion of financial capital into listed companies by leverage also happened frequently.Many control disputes have brought significant negative impacts on enterprises and even the entire capital market,drew great attention of scholars at home and abroad.However,with the corporate management phenomenon that Ma Yun holding less than 10% but controlling Alibaba,Ren Zhengfei holds less than 1% but is at the helm of Huawei.It is not comprehensive enough to study the ownership of control from the perspective of equity.In addition,China’s enterprises are in a society with Chinese characteristics of "human society" and "rule of law",and their survival and development are inevitably affected by social capital and institutional environment.Therefore,studying the control rights of listed companies from the perspective of social capital and institutional environment is of great significance to alleviating the contradiction between shareholders and management,improving corporate governance and maintaining healthy and stable development of the capital market.This article takes the "Baowan dispute" as an example,introduces social capital and institutional environment into the research of control content competition,and deeply analyzes the role played by social capital and institutional environment in the process of competition for founder control and the economic consequences of competition for control.The study found that the strength of social capital,the fit of social capital,and the formality of the institutional environment jointly determine the effectiveness of social capital control.The social capital control validity increases with the increase of social capital intensity and social capital fit,and at the same time it has a reverse relationship with the formalization degree of the institutional environment.However,the social capital based on the relationship between private relations and interests is not solid.If it is not well maintained,there will be a situation of unstable control.At the same time,the institutional environment can directly affect the ownership of control.In addition,the competition for control will not only causes the suspension of corporate stocks and unstable stock prices,damage the interests of small and medium shareholders,but also lower the value of the company,lower the level of corporate governance,affect the normal operation of the company,seriously affect the company’s performance,and hinder the long-term healthy development of the company.In order to prevent control from falling into the hands of “barbarians”,the founders should focus on the establishment and maintenance of individual social capital,identify key resources of the company and key stakeholders,and maintain a deep relationship with key stakeholders of the company.Improve the fit of individual social capital and organizational social capital in order to achieve simultaneous development,and prepare the “security door” in the company’s articles of association and the rules of the board of directors.At the same time,the supervision part should fully fulfill its supervisory duties and improve relevant management systems and legal provisions so as to ensure the healthy and stable development of the capital market.