Based On Mergers And Acquisitions, Corporate Governance Research

How to improve economic performance and keep enterprises revitalized for ever is paid much attention by the managerial staff and commercial theorists all the time. After the concept of corporate governance appears, people commence to discuss whether there exists the optimal corporate governance structure and what mechanism and controlling methods are effective. Mergers & Acquisitions are considered as the last and the most effective method to solve the problem of corporate governance. However, people come to realize its limitations. It becomes the crux how to deal with Mergers & Acquisitions and learn the motives and procession concisely, how to recognize its role and relation among corporate governance and controle.Nowadays, corporate governance is still a hot problem in China and the world. What we should pay attention to is that the corporate governance theory is absolutely not as empty as ivory tower, but closely connected with practice. The legal institution, commercial conventions and enterprise structure in many countries firstly affect a breakthrough, instead of concerning theories. As for the theory of Mergers & Acquisitions, it comes from practice naturally. This act is not stopped but becoming more and more prosperous and vigorous.This paper makes trial analysis of the following problems: Firstly, the writer analyzes various types, principles and motives of Mergers & Acquisitions in history according to the enterprise theory. The writer explains it from property right, agency theory , management, efficacy, diversified management and the reason of undervaluation. Secondly, from control rights the writer expounds the effect of it on corporate governance. The control rights can be classified as two types: interior and exterior controls. The interior control includes interior competition of managers, constitution of board of directors and supervision of big shareholders. The exterior control refers to deputy suffrage vote competition and Mergers & Acquisitions. Onthe basis of this theory, the deputy suffrage vote competition frequently becomes null and void in both interior and exterior controls. Thus Mergers & Acquisitions becomes the effective method to perform corporate governance. Thirdly, from the capital composition, the writer analyzes them of Chinese enterprises and company.This research, firstly, can help us recognize correctly new changes in Mergers & Acquisitions and corporate governance in the real world, and understand their mechanism. Secondly, in theory, recognizing accurately the effect of Mergers & Acquisitions on corporate governance is conducive to theoretical development and helps theory instruct practice. Probing the administration structure and recognizing the roles of it let people make an overall and delicate consideration in the procession of corporate governance. All of these reflect in changes of laws & regulations concerning about corporate governance and system arrangement of enterprises. Lastly, the writer relates distance and difference between our country and others in corporate governance, and realizes the original condition divergence caused by particular situations of China. This helps us to make reform orientation and step choice clear, avoiding mistakes caused by the act of standing still and refusing to advance and indiscriminately copying. All these are greatly meaningful to the state-owned enterprises, private enterprises, the stock market and market development of company control rights.