Strategy Research Of The Ownership Structure Of Transnational Corporations In China

Ownership structure of the strategy is the first issue of which, multinational companies enter the host country to consider. There are three main views between corporate performance and ownership structure at home and abroad. Corporate performance and ownership structure is positive correlation,negative correlation and irrelevant. And most of these studies are one-way, that is ownership structure impacts corporate performance. In this paper, the basic point of view is that corporate performance and ownership structure is relevant, the fine structure of the equity can enhance corporate performance; At the same time, good corporate performance can also change the ownership structure.In this paper, the theory includes the theory of ownership structure and the theory of multinational companies' ownership structure. The theory of ownership structure has the theory of property Rights,the theory of principal - agent,the theory of incomplete contract and the theory of The interests of those who are related. The goal of the theory of property Rights, which includes the theory of transaction costs,the theory of rights of the constraints and the theory of institutional arrangements, is minimal transaction costs. The theory of principal - agent mainly researches asymmetric information between clients and agent. The reason of the theory of incomplete contract is that contracts is always incomplete, people have no idea to write a complete contract, or a complete contract is impossible performed completely. The main idea of the theory of The interests of those who are related is that both owner and controller should assume the corresponding risk and enjoy the corresponding benefits. In accordance with consistent principles of risk and benefits, the interests of those who are related should enjoy the residual control. The theory of multinational companies' ownership structure includes the theory of transaction costs,the theory of strategic behavior,the theory of organizational capacity,the theory of bargain,the theory of grab resources and the theory of system of difference. The theory of strategic behavior considers the strategic management model which multinational companies choose to enter the host country, which is the organization's strategic behavior, this model can enhance competitive position of enterprises compared to competitors to the maximum limit , getting monopoly profits. The theory of organizational capacity considers the enterprise border depends the impulse of enterprises voluntarily extend and seek to maximize the value under the prerequisite of mastering the core. The basis of the theory of bargain is the Game Theory, multinational companies use ownership advantages which is a bargaining power source to bargain with the host country. The theory of grab resources considers that the strategic goals of multinational companies entering the host country decides the ownership structure of multinational companies entering the host country. The theory of system of difference studies the difference of Laws regulations,culture and notion between multinational companies and the host country.On the basis of above theorizes, this paper analyzes respectively the relationship between corporate performance and ownership structure which is considered as an endogenous and exogenous variable variables, describes the multinational ownership structure type, in the end brings up an idea of Dynamic Selection Model of multinational ownership structure type. And the overall earnings,the ownership structure type and the inflation rate of the host country impact this Dynamic Selection Model. With regards of multinational ownership structure, discussion of the multinational companies entering the shareholding structure of the host country's choice of strategy, combined with the evolution of trends in ownership structure of transnational corporations in China further, in the end this paper analysis the trend of ownership structure of transnational corporations. Alcatel Shanghai Bell is the example of positive analysis. This paper analyzes the background and motivation of which Alcatel increasing capital to control Shanghai Bell, and also analyzes the results of which Alcatel increasing capital to control Shanghai Bell.