The Research On The Balance Mechanism Of Main Shareholder From The Conflict Management Perspective

Based on the background of the vigorous development of private economy and enormous private listed companies,this paper finds that balance mechanism of shareholding is easy to be formed in private listed companies because of their insufficient strength and the listing requirements.However,these companies do not really play a positive role in the mutual supervision and restraint of major shareholders to improve corporate governance,on the contrary,there are repeated control contests,which affect the normal development of companies.This paper studies the issue of competition for ownership caused by the evolution of shareholder conflicts in equity balance class enterprise,focusing on the essence,internal and external causes,formation mechanism and characteristics of shareholder conflicts and the results of conflicts.Firstly,this paper combs literature about balance mechanism and competition for ownership,and then gives comments on the relevant literature.Secondly,this paper combines principal-agent theory with conflict management theory in the research framework of relations of stockholders and configuration of control rights.The paper discusses the importance of managing the conflicts between major shareholders and maintaining the relationship between major shareholders.And then the paper takes the game of competing for control of Savings for example,and analyzes conflict's causes,characteristics and its transformation path.The paper also analyzes the positive and negative effects of the game of competing for control.Finally,the paper puts forward some suggestions in order to manage major shareholders' conflicts effectively,prevent the conflict escalation,maintain the shareholders' relationship,play a positive role of balance mechanism,and maintain the stability of control rights.Taking the game of competition for control of Savings for example,this paper finds it is easy to generate conflict and confusion when major shareholders ignore others' interests,disrespect and distrust each other,refuse to communicate.Resolving the conflict by coercive means or not managing the conflict appropriately will lead to the escalation of the conflict into a contest for control,which has a huge negative effect.Competition for control rights will lead to unstable operating performance and abnormal fluctuation of stock price.At the same time,the conflict of major shareholders affects the structure of balance mechanism and the stability of control rights.Finally,through the above analysis,the paper puts forward some suggestions,such as maintaining shareholder relationship,effectively managing conflicts among major shareholders,preventing conflicts from escalating,establishing and improving corporate governance mechanism,and playing an active role of balance mechanism.The significance of this study is combining conflict management theory with traditional principal-agent theory,hoping to provide new ideas for the study of shareholder relationship and the allocation of control rights.At the same time,this paper provides some reference for managing shareholder's conflict,promoting mutual supervision and maintaining control stability.