The Control Rights Contest Of Hengtai Aipu And Its Impact Analysis

At present,our country is accelerating to perfect the socialist market economy system and property right system,and is devoted to cultivating top competitive enterprises.Considering the unique national conditions of our country,we have taken some measures to help enterprises adapt to the new development of the capital market,such as the reform of non-tradable shares and the reform of mixed ownership.Under the influence of economic development and related policies,the ownership of enterprises is shifting from centralized to decentralized,and the control of enterprises is also facing new challenges.In the context of equity dispersion,enterprises with good performance and bright prospects face higher risk of control struggle.In recent years,there have been a number of disputes over control in the Chinese stock market,such as the dispute over control of Baowan,Xinmei,Xizang Tourism and Wantong Technology,etc.These incidents have seriously affected the normal operation order of enterprises and destroyed the internal stability of enterprises.The battle for control has become the focus of people from all walks of life.However,the public knows little about why,how and what the effects of control struggles are.There are also relatively few case studies on control struggle in academia.Therefore,Hengtai Aipu,one of the most representative cases of control struggle in the Chinese stock market,is selected as an example.From the perspective of the mode of battle,this case contains almost all means of battle in the market,and can be regarded as A representative case of control struggle in A-share listed companies.Therefore,this case is analyzed in depth.It is representative and typical to explore the reasons behind it and the influence it brings.In this thesis,literature research method,case study method and financial data analysis method are used to deeply interpret the process of Hengtai Aipu’s struggle for control,analyze the causes of this crisis,and take this as a starting point,further discuss the struggle for control event,the financial and non-financial impact on the business performance of listed companies and the capital market,and draw corresponding enlightenment.Based on the revelation,it is hoped to provide effective strategies for the controlling shareholders of listed companies to protect the company’s control right and how to solve the crisis of control right smoothly under the background of the new era,and provide valuable theoretical inspiration for the majority of investors in the market how to participate in the market investment more rationally.Through the analysis of the above cases,three conclusions are drawn: first,the fundamental cause of the control struggle is that the value of the enterprise is underestimated;Secondly,the dispersion of corporate ownership structure and the imperfection of corporate governance mechanism are the important reasons for the struggle for control rights.Thirdly,the law plays an important role in regulating the behavior of control struggle.It is concluded that listed companies should strengthen market value management and improve their sensitivity to stock fluctuations.Establish a more perfect ownership structure,further systematically adjust the allocation of ownership,optimize the corporate governance structure,and establish a perfect internal supervision mechanism,so as to reduce the probability of external hostile takeover risk.In view of the government regulatory departments,we should further enhance the supervision of the securities market,improve the relevant laws and regulations,and effectively guarantee the healthy and benign operation of the market.The thesis is divided into five main sections.Firstly,it provides an overview of the whole thesis,introduces the background and significance of the case study,summarises the past literature related to control contests at home and abroad,and indicates the research ideas and research methods of this thesis.Secondly,it introduces the theories related to control contests,including the concept,causes and effects of control contests as well as the theoretical basis of control contests,which provides the theoretical basis for the following study.Then,the case introduction section explains the basic situation of Hengtai Aipu and the parties in the control struggle as well as the background of the line in which the listed company is located,and introduces the reasons for the occurrence of the control struggle,and then reviews the whole process of the control struggle of Hengtai Aipu in chronological order and summarises the means of implementation in the control struggle of Hengtai Aipu.The thesis then analyses the impact of the dispute on the company from three perspectives: corporate governance,corporate operations and capital markets.Finally,the conclusions and insights of the case study are presented.