Research On The Benefits Of Control And Second Types Of Agency Problems Based On The Growth Of Enterprise Finance

With the rapid development of market economy,more and more control contests happened under the influence of the maturity of capital market.For example,Guomei,Leishizhaoming and contest between Vanke and Baoneng.Although the result is not too bad to ruin a company,it still cost too much money to solve the problem.There are so many different reasons for control contests.So this article choose one example-Shanshui Cement to explain one reason that cause the control contest.Because Shanshui Cement's major shareholder use some method to embezzlement the interests of the companies,especially the interests of the minority shareholders,so the major shareholder's controlling power was been robbed.And in recent years,more and more major shareholder embezzles other minority stockholders' interests is a huge problem that listed company have to face to.These events not only cause the losing of listed company's assets,even losing the state asset,but also do great harm to the benefit of middle and small stockholders.The main reason is the major shareholder urge to obtain the Benefits of control,lead them to do the unreasonable actions.These actions makes the agency problem between company's major shareholder and the minority shareholders became more serious.If the company can't find out the hidden tunneling behavior of controlling shareholders,or don't supervise the controlling shareholders behavior,the company will face a serious crisis of second types of agency problems,result in the company's growing worse and worse.Therefore,in this paper,the writer use case study method to describe the Shanshui Cement's control contest.First,Based on the analysis of the benefits of control rights and second types of agency problems,find out there relationship.Then,with the help of the relevant indicators of the financial growth,the financial situation of the case enterprise is analyzed.Finally arrive at a conclusion that in the different stages of the development of the enterprise,how the desire of the controlling shareholders to obtain the benefits of the control rights affects the second types of agency problems.And put forward some suggestions,in order to better control the behavior of controlling shareholders,protect the interests of small shareholders and the interests of enterprises.The innovation of this paper lies in the writer separate the benefits of control into control rights and private benefits,combining with the actual situation of enterprises,based on the financial situation of enterprises,analyzes the development process of second kinds of agency problems.Analyses the controlling shareholder of the two different benefits of control gains,into the development of enterprises to understand its impact on the second types of agency problems.It provides a new way to solve the second kinds of agency problems.