Research On China Vanke's Conflict Of Control Rights In The Viewpoint Of Market Value Management

In order to stabilize and improve the market value,listed companies usually take actions which called ' Market Value Management' in the business process.Such management activities are always implemented in the companys' strategic planning,business management and investor relations management activities,so as to achieve the creation,realization and to the unity of company ' value,and ultimately to achieve the target that company's intrinsic value is consistent with the company's share price.The essence of the so-called 'Market Value Management' in China equals the concept of 'Value Management' in the west.Along with the reform of non-tradable shares of our country in 2005,the whole market shares began to be released,and then gradually the concept of value management was introduced to our country.However,the capital environment in China still had something diffent from which in the west,so there comes the ' Market Value Management '.Market Value Management consist of 3 process,which is the value creation,Value management is aimed at business operation in the process of value creation,value operation and value realization,and in the three processes,there are also many specific methods,including participation in profit,equity incentive,the share increase or decrease of important shareholders,additional issue and rationed shares,investor relations maintenance,stock repurchases,and so on.As a result,effective maket value management activities can improve enterprise's ownership structure and corporate governance structure,and then improve enterprise' value,promote the share price to rise.Corporate control conflict is actually the enterprise competition happened in the company,which mainly caused by the external capital holders in the way of acquisition,merger,or for the authority to win the enterprise equity,and thus seize the occurrence of actual control.Those companies that have inefficient management,highly dispersed ownership,and low price level,are especially more accessible to the external capital holders,with the higher risk of corporate control conflict.The suffer of enterprise control conflicts can not only lead to the lose of control right against founder' willing,but also lead to enterprise stock price shocks,the enterprise internal and external trust crisis.And all of the courses do not will to the long-term and stable development of enterprises.What we can find now is that,for one hand,the reasons of Enterprises vulnerable to control conflict consists of equity dispersion,low share price level,and imperfect corporate governance structures.And for another,the effective market value management activities can not only improve the enterprise ownership structure and governance structure,but also can promote the share price,then we will get the conlusion that there must exist something between the enterprise maket value management and the conflict control,and the maket value management carried by companies is likely to dicrease the probability of corporate control conflict in the companies.After the implements the equity division reform of China in 2005,the China Vanke Co.Ltd,as one of the first companies whic positively response to the state' policy of encouragement of maket value management,was the first company which added the market value of the management indicators into the performance evaluation system.In addition,it also carried out a series of market value of management plans,however,these value management activities didn't prevent Vanke from the fate of this corporate conflict.This paper will introduce the concept of maket value management and the corporate control conflict,and the relationship between them.And then,based on the viewpoint of maket value management,I will analyze the specific value management plan of Vanke to offer some possible advice for Vanke,and other listed companies to reduce or even avoid the conflict of control.