A Study On Control Right Of Alibaba Group From The Perspective Of Equity Financing

Internal corporate control is not only the most important aspect of governance,but also the most difficult questions in relevant questions.Chinese enterprises increasingly large-scale and international,to attract institutional investors and professional managers became the choice of many enterprises.At the same time,the enterprise began to appear compete for corporate control issues frequently.Original controlling shareholders are faced with a serious problem,choose equity financing to develop or maintain being the controlling shareholder.Whether it is the loss of control right of the original shareholders or not,management process will lead to high treatment costs,even because of excessive friction missing the good opportunities for development,and then closed down.It can be said that the practices about the fight of control right are more,but mature mode of operation and valuable inspiration is less.Internet companies are asset-light operations,and higher risk infancy,so this contradiction in Internet companies on behalf of the emerging technology industry in particular.In China,the Internet industry in recent years achieved remarkable success,playing an indispensable role in promoting economic development.But even as good as Alibaba,companies are faced with the equity financing or control dilution problems,enough to see the current lack of research on the control of the Internet business.Therefore,this paper take Alibaba control crisis for example,from the perspective of equity financing to sort out related corporate control theories,trying to find place for reference.In this paper,Alibaba equity financing process is divided into two phases: before and after the crisis control.First of all,this article introduces the four equity financing process before Alibaba control crisis,and then describes the series initiatives for maintain control after the control crisis taken by the Alibaba group,just like Yahoo shares repurchased,proposed Alibaba Partnership,etc.Subsequently,the paper analyzes the reasons of Alibaba control crisis,as well as the control right management to resolve the crisis.This paper argues that Alibaba control of the crisis occurred mainly because its ownership structure is relatively holdings,venture capital inconsistent with the strategic advice of Ma and his team,and the lack of exit mechanism agreed in advance details of the agreement.After the crisis,Ma and his team through equity,voting rights,the Board of Directors allocated control right,successfully mastered control,greatly enhance the value of the company.Finally,the paper summarizes the opinions above to provide some useful experiences and lessons for other companies in the control right management process.