Founder's Social Capital,control Competition And Corporate Performance

With the establishment of the company system,the ownership structure system came into being,"the same share and the same right" has become the mainstream of the ownership system.In 2004,the State Council put forward "actively and steadily solve the problem of non-tradable shares".The reform of non-tradable shares began,and the real realization of the equity structure system of "the same shares and the same rights" began.Under the system of "the same share and the same right",with the development and expansion of the enterprise,the founder's equity is diluted,and the control of the enterprise is weakened,so its rights and interests cannot be guaranteed.The founder of an enterprise bears more risks than the investor and receives greater returns,including the social capital such as reputation and networking accumulated in the course of running the enterprise.The institutional background of "the same share and the same right" and the rigid demand for corporate financing have led many founders to exercise actual control over enterprises through social capital under the situation of weakening equity advantages.At the same time,more and more signs of social capital operation have appeared in the contest for control rights,and its role in the contest for control rights has gradually been taken seriously.By making company strategy and making decision by the founder and grasping the actual control right,the founder can give full play to his talent,grasp the market demand better,and help the enterprise to improve its business performance and better development.Therefore,under the premise that the founder is facing the loss of equity capital under the "same share and same right" system,how to control the enterprise through social capital has important practical significance.In order to more accurately understand the relationship between social capital and control rights,and put forward measures to maintain the stability of control rights,this paper takes two classic control rights contest incidents of NVC and Gome Electrical Appliances as the entry point,deeply analyses the composition of the founder's social capital,and the role played by the founder's social capital in the contest for corporate control rights.And the reasons that lead to different results of control rights contention under different social capital fit degree are discussed,and the key to maintain the stability of corporate governance is discussed.In this paper,two case studies are used to study the control contest between NVC and Gome Electrical Appliances as the research object.Firstly,this paper objectively introduces and describes the control contest between NVC and Gome Electrical Appliances,analyses the similarities and differences between them,and compares the changes of Founders' social capital in the case company.In addition,it compares the differences of Founders' social capital correspondence in the two cases.Through analysis,it can be preliminarily concluded that the correspondence degree of the founder's personal social capital and corporate social capital has a certain impact on the competition for control rights.The higher the correspondence degree of social capital,the more dependent the enterprise is on the founder.Finally,according to the market reaction of two control contests of NVC and the financial performance analysis of NVC and Gome Electrical Appliances in the control contest,we can conclude that in the process of control contest,the founder will use social capital to compete for control.Controllers with a higher degree of social capital correspondence will have a greater degree of correspondence between personal social capital and corporate social capital,which will affect the key resources of enterprise development,so there is a certain impact on corporate performance.Based on this case,this paper puts forward the following suggestions on how to maintain the stability of the actual controllers' control rights and avoid the turbulence caused by the competition for control rights under the background of the current "same share and same right" system.Firstly,it is necessary to improve the correspondence degree between the social capital of the enterprise organization and the individual social capital of the actual controller,so as to enhance the dependence of the enterprise on the actual controller.Second,the actual controllers must identify the degree of dependence on stakeholders.According to the clear stakeholders,the actual controllers need to actively build a relationship network with these stakeholders and grasp the key resources of enterprise development as far as possible in order to improve the possibility of obtaining resources.At the same time,we should pay attention to the development of individuals and enterprises,and strive to improve the compatibility between personal social capital and corporate social capital,and enhance the dependence of enterprises on individuals,which is conducive to the stability of control rights.