Research On The Impact Of Control Contests For Enterprise Value

In recent years,with the rapid development of the national economy and the continuous maturity of the innovation and entrepreneurship environment,my country's private enterprises have expanded their business layout and market structure through financing,mergers and acquisitions,and resource restructuring.Domestic business entities have reached an unprecedented scale of development.However,in the process of rapid development,differences in the concepts of financing,mergers and acquisitions,and company management have resulted in the continuous change of corporate control,which is also one of the important reasons for the frequent occurrence of control contention in my country this year.This article selects the degree of impact of the three control contention processes that LS Company has experienced on corporate value as the research object,and conducts research and analysis on the above problems.First,the concepts and theories involved in the research of the thesis are defined and introduced.The causes and processes of the three control competitions that have occurred in LS company so far are sorted out.It is concluded that the founders are active in the first and second control competitions.Using the means of competition between the introduction of external institutional investors and the "white knight",the shareholding structure controlled by a single shareholder was eventually transformed into a shareholding structure and corporate governance structure jointly controlled by multiple large shareholders.Then,this paper uses the event research method and the financial indicator method to analyze the impact of three control rights competitions on the financial performance and corporate value of LS companies in the short and long term,and uses the calculation of cumulative excess returns to reflect the control rights competition events in the short term.The nature and extent of the impact of corporate value,and then the use of financial index analysis,from the four aspects of profitability,solvency,operating capacity,growth capacity,etc.,reflect the nature and extent of the impact of control competition events on corporate value in the long run,and It is concluded that in the short-term and long-term,the last two control competitions of LS Company have a negative impact on corporate value.Finally,based on the conclusions of the LS company case study,it gives suggestions for improvement from the perspectives of the founder,financial regulations,corporate governance system,and shareholding structure,for other private companies in China that may or are facing similar difficulties.To protect the legitimate rights and interests of entrepreneurs from infringement,help the sound development of private enterprises,and maintain the stability and prosperity of the country's macroeconomics.