Control Right Contest And Protection Of Investors' Interests

In recent years,the control disputes of A-share listed companies have increased,which has aroused widespread concern from all walks of life.Many control right contest lasted for a long time,and the contradictions have not been effectively resolved for many years.In order to protect their own control over the company,large shareholders often adopt extreme means such as long-term suspension of restructuring,poison pill plan,and scorched earth policy to deal with the acquisition.The company's healthy development and protection of investor interests have had a tremendous impact.Especially under the principal-agent relationship of information asymmetry,it is easy to produce problems such as “internal person control”,related party transactions,and interest transfer.The situation that the Investors' interest protection mechanism is not perfect is even more worrying.Under the background of the growing competition for control rights,it is very realistic and urgent to study the protection of investor interests.This paper selects the control disputes of the Changyuan Group that occurred in recent years as the research object,and carried out research on the protection of investor interests.Firstly,the relevant theories and literatures at home and abroad are sorted out,and then the general situation of Changyuan Group and the whole process of control right contest are briefly introduced.On this basis,the paper analyzes how the control right contest of Changyuan Group affects the protection of investors' interests,and finally the impact of control right contest on the protection of investors' interests is analyzed from the perspective of market effects and financial effects.According to the research,from the market effect,on the one hand,the secondary market placards caused the stock market to fluctuate drastically in the short term,which caused the stock price to rise rapidly,the shareholder wealth increased,the exit of the acquirer and the extreme anti-acquisition means to the market in the short term.Negative effects have been produced,which has harmed the interests of investors.On the other hand,the long-term market reaction performance is negative.The competition for control has caused the company's market value to drop significantly,which has seriously damaged the interests of investors.From the perspective of financial effects,the competition for control over the years has led to excessive consumption of internal resources.The company's performance level has fluctuated greatly.The solvency,profitability and development capacity have been weakened rapidly,and the company's operational risks and financial risks have surged.The long-term investment return of investors cannot be achieved.Based on the case study,this paper gives relevant suggestions from the perspective of investor protection.From the perspective of micro-governance governance,the company should separate the control and management rights and improve the current organizational structure of the board of directors;from the macro-level legal point of view,on the one hand,it is necessary to strengthen the protection of the interests of investors by the law;Improve the quality of information disclosure to reduce the impact of information asymmetry on the interests of investors.