Control Of The Company And Firm Value

The securities market has played a more and more important role in Chinese economic development, the health and efficiency operation of the listed companies is the basis of China securities market, which to some extent depends on the efficient corporate governance. To do this, the control rights are the key factor of corporate governance and which guarantee the listed companies operate according to rules. If we can dispose of the control rights efficiently and set up market to ensure control rights flow reasonable, we are sure the quality of the listed companies will improve obviously, the efficiency of resources distribution will improve as well as the efficiency of capital using, which further boost the development and progress of national economic. So the issue of control rights is a key issue of academic research and business practice.This article is focus on control rights and studies the allocation model, characteristics as well as efficiency of control rights disposition. We begin with several basic issues of internal control and then compare and analyze the related theories of control rights. After that, we study the current situation of internal control rights worldwide through comparisons. On the basis of these, we research into the Chinese securities market from two aspects, which are the structure of control rights, this reflect the internal control system of enterprises and the market of control rights, this reflect the external mechanism of control rights. This article is divided into the following four partsPart one, which include chapter two and chapter three. On the basis of look back the related studies and theory of china and other countries, we review the essential and function of control rights, the operational mechanism and basal characteristics as well as operation efficiency of control rights, and then we design a framework of our study.Part two, which include chapter four. On the basis of analyzing the current situation of internal control rights worldwide, we specialize on four kinds of mechanism, which are market model on behalf of USA and England, bank model on behalf of Germany and Japan, family model on behalf of East Asia and internal model on behalf of neutral and east Europe. We analyze these four kinds model and study the characteristics and default of Chinese market at last.Part three, which include chapter five and six. On the basis of the analysis above,we study into the relationship of the control rights structure and the evaluation of enterprises and the efficiency of China control rights market as well as private benefit through empirical study. Take into the consideration of China stock market is weakness efficiency market, we appraisal the value of listed company through two aspects, which are market value and internal financial value. To be specific, they are Tubin Q, which reflect the expectation of public company and financial ratios, which reflect the operation quality of public company.Part four, which include chapter seven. On the basis of our empirical study results, we give some policy suggestions about how to design the reasonable control rights structure and govern the trade of control rights as well as how to improve the efficiency of control rights market.