The Research On The Conflict Of Interest And Mode Optimization Of "PE+Listed Companies" Cooperation Mode

In 2011,Dakang and Silicon Valley Paradise set up M&A funds which marks the birth of the mode of "PE + listed companies".This mode gradually becomes favoured in the capital market.PE and listed companies can play their respective advantages in cooperation.However,there are a series of arguments about the mode.It brings about some controversial issues such as insider trading and interest transfer.In addition,there are many prolonged projects,“Zombie Fund” and underperformed projects in the market,which harms the stability of the market.Therefore,the cooperation mode of “PE+ listed companies” is still with many imperfections and needs improvement.This paper chooses Steyr Motors as the object of the case study.As a good example of the cooperation mode of “PE+ listed companies”,the company was favored by the market: when the company released the non-public offering plan,its stock price rose dramatically.However,after the completion of the merger,it did not meet anticipated outcomes regarding the company’s organizational transformation and business performance,but suffered substantial losses,senior executives’ collective departure and multiple lawsuits.This case indicates that there is a conflict of interest between PE and listed companies,which is one of the key reasons for the failure of the merger.This paper analyzes the conflicts of interest between PE and listed companies,and proposes corresponding suggestions,which aims to provide some intuitions for the improvement of the Cooperation mode of” PE+ listed companies”.This paper is divided into seven chapters,shown as follows.The first chapter is introduction.This chapter mainly introduces the background and significance of the research topic of this paper.Briefly introduces the content and framework of the research.And introduces the research methods used in this paper,and summarize the main contributions of this paper.The second chapter is literature review.This chapter summarizes the results of existing research about the motivation of mergers and acquisitions and problems in mergers and acquisitions,the cooperation mode of "PE + listed companies",PE and institutional investor.The third chapter is definition and theoretical analysis.Defining the concept of the cooperation mode of "PE + listed companies",and describing the types of the mode.Then analyzing the possible conflicts of interest from the perspective of rational economic man,asymmetric information theory and game theory for the following research.The fourth chapter analyzes the status quo and characteristics of China’s M&A market.The fifth chapter refer to the background.It explains why Steyr is chosen as the case.It also reviews the process of merger and acquisition.The sixth chapter is the case study that analyze the financial situation of the company and the conflicts of interest.The seventh chapter is the conclusion,suggestion and prospect.Firstly,summarizing the relevant research conclusions on the conflict of interest in the cooperation mode of "PE + listed companies" at this article.Then giving some pertinent suggestions.Finally putting forward the deficiencies and the follow-up research in this paper.There are three innovations of this paper.First of all,this paper analyzes the problems in the cooperation mode of "PE + listed companies" from a new perspective of conflict of interest.Secondly,it summarizes the existing literature,and then describes the characteristics and types of this mode.Furthermore,it evaluates the possibility and causes of conflicts of interest in the cooperation mode of "PE + listed companies" from the perspective of rational agent theory,principal-agent theory and game theory,which lays a foundation for further research.Finally,the selected cases are representative.It can be used for reference in analyzing similar behaviors of other companies.And because of the practical suggestions,it can also provide practical reference for the improvement of the cooperation mode of "PE + listed companies".This paper also has some deficiencies.Firstly,there are limited literature about the cooperation mode of "PE + listed companies";relevant data and statistical information are also relatively scarce,the analysis thus may lack robust data support.Secondly,due to the limitation of the case study,the conclusions need further empirical research to be expanded to the general ones.