Relationship Between M&A And Corporate Goverance In Transformation Economy Period

With the development of reform on the stated-owned enterprise, problem on corporate governance is argued more and more. Most of the listed companies derive from the stated-owned enterprises. Because of the uncompletely reform, the equity structure of the Chinese companies has a lot of problems, for example, internal person's control, invading the shareholders' benefits, the inefficient internal and external supervision system, etc. The equity structure of the listed companies is unefficient and restricts the reform and development of stated-owned economy. As a new organization form, civilian company is occupying more and more proportion in country economy. The civilian enterprise's governance is almost the family dominant form at present. The civilian enterprise is lack of the scientific management system and their manager is unqualified for development of the enterprise. All enterprise in the market economy, including the stated-owned and civilian enterprise , must face the problem on governance. The problem of governance about the listed company is seriously especially.In the future, abating the state-owned stocks will bring up a serial of Merger and Acquisition (M&A) and has an impact on the pattern, the motives and the performance of M&A. Grasping the motives and probability of M&A and having an insight into the relationship between M&A and corporate governance and corporate control, the paper have a realistic proposal on M&A: let the foreign enterprise M&A the Chinese enterprise. The civilian enterprise obtain the equal-level statue when the foreign capital is entering our capital market. Only in this way, can the Chinese enterprise have a huge progress. With the combination of corporate governance and stage of the enterprise' progress, The paper brings forward the life cycle theory of corporate governance and corresponding the dynamic corporate governance pattern. The theory let the various enterprises adopt the proprietor governance model in the competition.