The Case Study Of NVC Lighting Control Right Based On Social Capital And Equity Capital

With the government’s strong support and the improvement of the entrepreneurial environment,China’s start-up enterprises began to flourish.Venture companies encounter financial bottlenecks is inevitable,thus the introduction of capital is unavoidable.Capital intervention has comforted the problem of shortage of funds,but also has brought far-reaching impact to the company’s governance structure.The introduction of capital tends to distract the founder’s control,which means that many future venture companies may continue to encounter control disputes.The turbulence control has a significant negative impact on the company’s performance and value.Therefore,the study of the issue of control of contention has profound significance in academia and practice.The three control events of NVC lighting has a great impact.These events are open,providing more comprehensive information to ensure that the case study data is accurate and reliable.In this paper,through the relevant literature at home and abroad,using social capital and equity capital dual perspective,combined with the theory of asset specificity and point of view of fit between individual social capital and organizational social capital,the research of NVC lighting three control dispute events in detail analyzes the influence of social capital on the control right,the influence of the asset specificity and the social capital fit on the control right,the inducement of the dispute of control right and the consequence of the dispute of control.The research is to find a way to stabilize control,so that enterprises can develop steadily.This paper draws the conclusion from the case study:(1)the control right is not only affected by the equity capital,but also by the influence of social capital;(2)the impact of asset specificity on control is limited by social capital fit;(3)When the equity capital and social capital deviate from the enterprise,the enterprise is prone to control of the contention event;(4)the turbulence of the control of the enterprise,founder,shareholders have a negative impact.Stable control is conducive to secure development of enterprises.Therefore,on the one hand,the founder should pay attention to the role of equity capital,he should set up some special provision in the investment contract in the introduction of capital,rather than blindly introduce capital dilution equity;the other hand,the founder should embedded their own social capital in the organization’s key resources,to improve the social capital fit,and then to increase entity’s dependence on their own to strengthen control.It is hoped that these proposals will provide reference for start-ups.