A Study On The Impact Of Insider Control On Corporate Performance In China's Listed Companies

With the economic development and socialization of the division of labor,the growing scale of the development of listed companies,the company's internal governance problems gradually highlighted.2015 in China's capital market,the name of the "treasure of the dispute",the insider control of this issue into people's attention.Insider control with the emergence of corporate companies appear in the joint-stock companies have been fully reflected.It is in the ownership and management of separation and professional managers market mature background,due to the owner's own ability to produce defects,the owner of their own knowledge level,management capacity constraints,they commissioned managers to manage the company,thus Form a principal-agent relationship.The formation of the principal-agent relationship is based on the contract between the owner and the operator,and the contract is long-term and incomplete.This kind of modern enterprise system is the company system,although there are many other enterprise system is difficult to meet the many advantages,but the owner and the operator separated from the characteristics,or between the principal and the agent in the business objectives of the difficult consistency,It can not be ignored defects.Therefore,in the management,in order to give full play to the enthusiasm of the operators and management skills and wisdom and to avoid the impact of asymmetric information,the owner gives the operator a certain degree of decision-making and control.Therefore,the business operators are not only the share of the residual control of the enterprise,but also the share of the residual claims.This leads to the emergence of "insider control" phenomenon.Through a large number of literature studies,people have a greater degree of opposition to insider control,theinsider control is equivalent to "insider control issues" and strongly opposed.In this paper,a lot of literatures have found that people have different evaluation of insider control.Based on the theoretical basis and the actual case analysis,the author makes a preliminary judgment that the insider's control will affect the performance of the firm,but the lack of data support research,The relationship between insider control and corporate performance is the starting point of this paper.On the basis of the combination of empirical analysis and normative analysis,this paper analyzes the mechanism of insider control and the influence of insider control on corporate performance by using game method to analyze the internal control and the internal control problem.By selecting the appropriate listed company samples,collecting data and conducting empirical analysis,the author analyzes the relationship between insider control and corporate performance.And the state-owned enterprises and non-state-owned enterprises,there are two full-time and non-complete part-time enterprises were compared.This paper finds that the increase of insider's control is beneficial to the growth of corporate performance and puts forward some policy suggestions on insider control according to the empirical results.