A Case Study On The Impact Of Transference Of Corporate Control On The Performance Of Yage Share CO.,LTD

Nowadays,glasses play an increasingly important role in the national daily life.With the speeding up of the population aging process,and high myopia rate,glasses have almost become the necessities of life.Glasses manufacturing enterprises also become a priority in smooth and the growth of the industry development,even the national economy.And Yage Share belongs to the glasses rubber sheet manufacture enterprise.At present,the domestic rubber sheet market competition is intense.Homogeneous competition is intensifying.Under this background,the study on control changes of Yage Share aims to seek the influence on the enterprise.It is very important for the enterprise to adjust the business decision to make the stability in the industry.The full name of Yage Share is Wenzhou Yage plastic board co.,LTD.It is the main glasses plastic board manufacturing,which was registered in Wenzhou in 2005.It listed its shares on the new three board in December 2014.In January 2016,the actual controllers changed.After the change,controller was arrested on the suspicion of illegal events.So the acquisition of shares was for what purpose and has what impact on the operating performance? This article mainly analyzes the effects of control changes on the performance.Based on this,there are some related suggestions for market regulators,the capital market investors and listed companies,such as Yage Share.Refer to the analysis of the Harvard framework,this article aims to analyze the change of control of Yage Share,listed on the new three board.Based on the background and the change of control,we analyze the performance before and after the control change.Using methods in Harvard framework such as accounting,finance analysis.The study found that: After the change,the Yage Share set up a subsidiary and shifted company’s major assets,liabilities,and people in addition to senior managers,directors and supervisors of the enterprise personnel.Besides,business performance and operating ability had also fallen.In the second year after the control change,Yage Share stopped the production and business operation activities.On the basis of those,we can draw the conclusion that the change of control has a negative effect on Yage Share’s performance.Based on related studies,this article aims to give some suggestions to listed companies,market regulators and investors.Listed companies should focus on improving enterprise performance,trying to improve the corporate governance and internal control system.The company still needs to strengthen the supervision of making decision.Market regulators should strengthen the review of the acquirer’s qualification and supervision.It will effectively avoid malicious M&A events,reducing the bad effects on enterprise performance.For investors,they should pay close attention to the capital structure of enterprise,decision making and change of related policies.Assess risk of investment and make the corresponding adjustment in time in order to prevent the huge investment losses.