Analysis On The Competition Of Control Rights Of Private Listed Companies And Their Impact

At present,China’s economy has entered into a new normal phase so that its growth rate slows down.The reform of the Non-tradable shares accelerates the circulation efficiency of our stock markets,so that the equity structure become more and more diversified,which not only stimulate the activation of the market for corporate control but also intensify the battle for control rights.In addition,most of the events occurred in the private listed companies.What’s more,these events have advise effects on the development of company.Therefore,optimizing the allocation of control rights mechanism of private listed companiesis helpful to reduce the occurrence of vicious competition events.In this paper,we regard China Shanshui Cement Group Limited(refereed to as “ShanShui Cement”)as the study case to analysis the causes and the root of this control rights competition,then analyzes the influence of the event.Under the analysis,we find that:(1)the unreasonable mechanism of control rights is the root of private listed companies competing for control rights;(2)despite the factor of the cement industry,the high private benefit of control rights and its own principal-agent contradiction are the main causes of the event;(3)the competition of control rights has an bad influence on the development of private listed company.According to the defects,this paper puts forward to these following suggestions:(1)follow the spirit of the contract(2)perfect the allocation mechanism of control rights from multi-level;(3)guide institutional investors to participate in financialsupervision.This paper hopes to provide some reference for private listed companies which has the similar allocation of control rights defects to perfect corporate governance system.