A Study On The Contest And Maintenance Of Corporate Control

The control conflict between founder and external investors occurs frequently in the reality,and the competition also been widely concerned by the capital market and scholars.On the basis of incomplete contract theory,this article analyzes founder's control on the view of its sources.In order to support the development of enterprises,the founder need to introduce external investors,which will inevitably bring dispersed ownership structure.So the possibility for control contest will increase.This paper also analyzed the cause of control contest,and the significance and path for founder to maintain their control.This paper takes the control contest of Vanke as the study case and the research perspective is Wang Shi team.The emphasis of this case study is the source of their control.Combined with the control contest,this paper research the maintain method of Wang Shi team.Through the theoretical analysis and case analysis,this paper draws conclusions:the founder's control comes from the occupation of key resources,such as equity,human capital and social capital.It is also affected by institutional arrangements.Along with the capitalization of assets and the diversification of equity,the founder's equity capital is diluted.As a result,the enterprise is vulnerable to the threat of external capital and control contest.Therefore,when the founder's equity is not enough to compete with the external investors,they can also keep control right through the four ways as followed:the control chain protection,man resources protection,social chain protection and the protection of internal governance mechanism.In addition,through the analysis of Vanke control contest,we also argues that the founder should also give enough respect for the capital when they are maintaining control.As the manager,they should start from the enterprise property rights system,and respect for the owner of the enterprise.This study is helpful for those listed companies which are prone to control contest by providing the relevant recommendations of maintaining control.Due to the limited access to data,this paper is short of the breadth and depth in the case resources.Meanwhile,results from single case research still need time to be widely applied.In the future,these problems can be supplemented and expanded.