Research On The Transfer Of Control Of State-owned Shareholders Of Listed Companies And Economic Consequences

The reform of the equity allocation in capital markets completed,state-owned enterprises looking for the way to reform and government regulating policy,a number of state-owned listed companies begin to ongoing asset restructuring.Assets reorganization often involves transfer of equity and control rights,which evolved a number of control disputes.Jiaozuo Wanfang is one of the typical cases.With Jiaozuo Wanfang's former largest shareholder—Aluminum Corporation of China Limited withdrawing from the company,a dispute drama around the control power caused by the stakeholders of the company began and lasted for 3 years.Several involved parties made the event a tortuous.The state-owned shareholders exercised their control rights by the board of directors,which made equity trading violate the rule of control rights transfer mechanism.The transfer of control power is a process of power structure rebuilding for the listed companies,and it is one of the ways to optimize configuration of company personnel and institutions.For example,high-efficiency management team will replace the team of low efficiency to improve business management and corporate governance.Equity trading is an important way to realize the transfer of control rights.However,the state-owned shareholder whose management ability is inefficient often dominates the equity transaction to some extent.Whether it is the leading party or the receiver,their behaviors have important impacts on the efficiency of control rights transfer.Therefore,studying the behaviors of stakeholders' effects on control rights transfer mechanism and the economic consequence on the background of the stated-owned stakeholders strongly controlling over the listed company,and discussing on how to improve the efficiency of control power transfer has both theory significance and practical significance.In this case,Jiaozuo Wanfang's state-owned shareholders' super control power made equity transaction failed in playing the role in the takeover market.Controlled by the state-owned shareholders' control,equity transaction in turn strengthened the control power of state-owned shareholders.Under the influence of the state-owned shareholder and other parties' motivations,Jiaozuo Wanfang failed to realize effective transfer of control power.After the equity transfer,the company's board of directors and executives were still mainly from the former state-owned shareholders,so that the company were not able to find a good receiver to inject high quality fresh blood into itself to improve management.Constant conflicts worsened its financial position,external reputation and governance efficiency.What caused this kind of control transfer?The root cause is the problem of allocation of control rights in state-owned listed company,and the external cause is the transfer mechanism.Therefore,how to improve internal control power allocation and external control rights transfer mechanism to make the state-owned listed companies' control rights efficiently transferring in the process of privatization is exactly what to be solved in this paper.