The Influence Of Founder Control Right By Social Capital And Equity Structure

In recent years,the battle for control rights between founders and investors in China has been commonplace,and the issue of control has received increasing attention in corporate practice.The founder of the enterprise has a natural desire to protect the control,and he hopes to control the actual control of the enterprise in his own hands.Investors rely on the equity capital invested in enterprises to intervene in the control of the enterprise.Therefore,the contradiction between the two parties makes the control of competition become inevitable.When the company has control over this problem,most of the founders of the company will choose to solve the control dispute by holding more equity capital,which will undoubtedly affect the ownership structure of the company,and not all founders can The actual control of the enterprise is obtained by increasing the equity capital.Social capital also played an important role in the struggle for control.In our country,because there are still many deficiencies in the law of property rights protection,and because of the culture and customs of our country,the relationship and the human condition play a vital role in the control rights competition.Therefore,it is not comprehensive enough to analyze the equity capital only.The concept of social capital can make up for the singularity of only analyzing equity capital.The social capital of the founder is the link of its social network,and the founder can gain the benefits of the resources it brings through its position in society.Whether it is the introduction of new shareholders or an agreement with other shareholders to reach a concerted action,a careful analysis can see the role of the founder's social capital.This article takes Vanke as the main research object.The dispute over the control of Baoneng and Vanke has aroused the attention of all circles.This classic case reflects some of the problems that need to be solved in the current corporate governance in China.Through literature review and case analysis,this paper analyzes the control rights competition faced by the founders in the process of Baowan's control rights dispute,and analyzes and discusses the control rights competition process from the dual perspectives of ownership structure and social capital.Other companies founders can be offered some ways to deal with control issues.The study found that in the process of control rights competition,the founder can draw or regain certain equity capital through the social capital of itself or the enterprise.It can be said that social capital plays a good complementary role to the stability of the equity structure.In the case of a more dispersed shareholding structure,the advantages of social capital are more obvious.In the process of control rights competition,even the equity capital can play a decisive role,but social capital is invisible,and the control it brings is difficult.Defined and unstable,so when the founder's social network has a rift,the control that it brings to the founder will be greatly affected.Therefore,when faced with the problem of enterprise control competition,the founder should establish a corresponding equity protection mechanism when the company is founded to avoid the crisis of excessive dilution of equity;secondly,the founder should also pay attention to establishing and maintaining itself and the enterprise.Social capital,standardizing internal corporate governance.