The Analysis On The Effect Of Control Transfer To The Corporate Performance In TIBET PHARMA

Separation of the ownership and control is a common phenomenon in modern companies,the phenomenon is an inevitable result of economic development,separation of ownership and control ensure the professional management.However,with the decentralization of the corporation's shares,and different operation philosophy of owners and managers intensifying,many companies have erupted competition for control between shareholders and managers,or between different shareholders.The transfer of control has a huge and long-term impact on the corporate governance and operating performance.Gome,NVC,Vanke and many other well-known enterprises erupted the competition for control and these events attracting more and more attention by the capital market and the public,the transfer of control has become a major focus of corporate governance research.On the other hand,the transfer of control has also become a method of corporate governance,some corporates want to optimize the corporation's shareholding structure,improve production and management efficiency through the transfer of control.Since Manne put forward the theory of market for corporate control in 1965,Western scholars have studied the control transfer for many years.Most scholars believe that the transfer of control has a positive effect on reducing the agency cost and improving the management efficiency.Market for corporate control theory and related research started late in China,but with the rapid development of China's economy,the phenomenon of China's listed companies to transfer their control is becoming more frequently,the study on the phenomenon is becoming more important.The control transfer event in the TIBET PHARMA,the ways of control transfer,the effect of the transfer,and the shareholder wealth effect of the control transfer analysis was performed using literature research method,case analysis and comparative research method.This paper makes a systematic and comprehensive analysis of the influence of the control transfer from the perspective of financial indicators and shareholders' wealth.Exploiting the financial indicators of horizontal,vertical comparison and the abnormal return of stock prices,systematically analysis the impact of the control transfer.Finally,the author brings forward the enlightenment and suggestion of the control transfer of TIBET PHARMA.This paper takes the control transfer event of TIBET PHARMA as the case study object,the paper divides into five parts.In the first part,the background and significance of the research on the transfer of control are expatiated,and the research status of this field is summarized.Then the research route and methods are introduced,and describes framework of the paper.The second part is the summary of relevant theories,summarizes the related concepts and methods of control transfer,and introduces the efficiency theory,signal transmission theory,and principal-agent theory related to the control transfer.The third part is a brief introduction of the case,analyzes the basic situation,the ownership structure and the operation of TIBET PHARMA,and introduces the related background,the transfer process and the characteristics of the control transfer of TIBET PHARMA,and analyzes the reasons for the transfer of the control of TIBET PHARMA.The fourth part is the analysis of the impact on corporate performance,this part is the core content of this paper.This part first analyzes the long-term financial data before and after the control transfer of TIBET PHARMA,and analyzes the impact of control transfer from four aspects: profitability,operational capacity,solvency and growth capability.And found in the two years after the control transfer,the financial indicators have been improved significantly and continuously.Then,using the method of event study,this paper calculates the excess rate of return of shareholders before and after the control transfer of TIBET PHARMA,and analyzes the influence of the control transfer on shareholders' wealth.The analysis proves the control transfer of TIBET PHARMA has a negative impact on shareholders' wealth in short term,but it can bring significant positive abnormal returns to the shareholders of the corporation in the long term and raise the value of the corporation.The fifth part is the conclusion and enlightenment,mainly elaborates the result of the case study,and provides some suggestions for the control transfer of other companies in the future.The control transfer is a complex and continuous research topic.In this paper,the control transfer of TIBET PHARMA is taken as a case study object,the motivations of control transfer are analyzed,two evaluation methods are used to analyze the impact on corporate performance and some suggestions are put forward.I hope this study can give a useful reference for the practice of the control transfer in other companies.