The Process And Influence Of Greentown China's Control Rights Contest

With the gradual opening up of China's capital market,changing control rights through mergers and acquisitions is becoming a common phenomenon among listed companies.With the continuously improvement of company governance structure,control rights contest between different groups of interest to achieve the goal of control rights replacement also becomes a common phenomenon.In recent years,while the control rights contest occurs frequently in the capital market,the cause of the control rights contest,the specific process of control rights contest and the means adopted by both parties and the impact of control rights as well as the influence of the company naturally comes to public concern.The academic circles have been paying their attention on the control rights contest between the different interest groups of the company,such as GOME and Shanghai Jahwa,while there are few researches on control rights contest of the acquisition mode.Therefore,it is necessary to find a suitable target company to carry out a comprehensive study on the control rights contest of the acquisition mode.The topics election of this article comes along with the improvement of the capital market in our country and the social environment in which the control rights contest frequently occurs.This article draws a comprehensively interpretation of the whole control rights contest process in Greentown and the future analysis of its cause.Also analyzes the impact on both financial and non-financial conditions of the company before and after the control rights contest.Then provides with relevant experience for other companies during the alteration of control rights to help them transition smoothly,altogether with the conclusion and revelation comes from the perspectives of contract design,corporate governance and contractual spirit.First of all,this article simply explains the research background and significance of the case,and the relevant theoretical results of control rights,which followed by a brief introduction of the theory related to this case.In the following case analysis,the related information of the Greentown China is introduced,and a whole process of control rights contest in Greentown China's is sorted out in chronological order.Then the specific reasons for the control rights contest of Greentown China are analyzed,including the nonstandard internal Governance mechanism,the lack of contract spirit,the imperfect key transaction details of the contract,the inconsistent business concepts between company culture and management,and the delay of equity delivery caused by unanimous action.Secondly,there are three aspects of the Greentown China's control rights contest impact according to this article: the corporate governance,the corporate management and market reaction.In corporate governance,Song Weiping replaces the company executives twice in a short term,which leads to the lack of stable core management in corporate governance.In the process of control rights of contention,both two companies disclose the actual operation and management of the company,which improves the transparency of the company business.The alteration in control rights involves multi-stakeholder interests,and small and medium-sized shareholders and other stakeholders are more actively involved in corporate decision-making,improving the stakeholder participation in corporate governance.In the aspect of company management,by comparing and analyzing the financial indicators of Greentown China from 2013 to 2015,it is easy to find that most of the financial indicators of the company have changed abnormally in the process of control rights contest.Under market effect circumstances,by analyzing the stock price chart it can be found that during the control rights contest,company's stock price shows big fluctuations,and the fluctuations are basically consistent with the turning point in control rights contest.Having been experienced the control rights contest,the future development of the company will face a lot of uncertainty factors,which will greatly affected the confidence of investors.Finally,this article presents several conclusions and revelations from the case of Greentown China's control rights contest.On the one hand,opportunistic behavior in the founders is the premise of control rights contest,while the imperfect key transaction details of the contract is the potential factor,and the internal organization of the enterprise is the key of control rights contest promotion.The problem of inter generational succession is a realistic problem faced by private enterprises.On the other hand,companies should avoid the founder's opportunist behavior during the transition of control rights.In addition,companies should consummate the key information of contract design in the equity transactions.In the process of corporate governance,we should regulate the internal organizational structure,and in the search for a suitable successor we should combine the specific characteristics of the enterprise.