A Study On The Control Rights Contest Of Listed Companies And Its Influence

Our private enterprises seized the opportunity of reform and achieved rapid development.In 2018,our private economy provided more than 50% of taxes and created about 80% of jobs.At present,my country’s private listed companies account for two-thirds of the total number of listed companies and occupy an important position in the national economy.However,as my country’s economy has entered a new normal,the development of private enterprises is faced with opportunities brought by major national strategic reforms,and on the other hand,it has encountered many problems.Among them are not only internal problems such as unsound corporate governance structure and weak competitiveness,but also many external challenges such as domestic and international environmental constraints,difficult financing and expensive financing.With the increasing openness and liquidity of the capital market,corporate governance issues have also received increasing attention.Because control has an important position in corporate governance,it has attracted the attention of various enterprises,governments,the media,and even many ordinary investors.my country’s control market began in 1993,and since 2013,the concentration of control rights has erupted.Nowadays,in the listed companies,the competition for control of private enterprises is emerging one after another.Although control contention is a relatively normal economic phenomenon,the frequency of control contention is too high for the company’s development.Therefore,enterprises need to strengthen the control right prevention and control system,improve the company’s control right adaptation mechanism,and reduce the frequency of adverse control right competition events.China’s capital market continues to optimize,and there are endless events of competition for control of private listed companies.This article selects the topic as a social background and selects Shanghai Shenkai Petrochemical Equipment Co.,Ltd.(abbreviation: Shenkai shares)for control rights to discuss the control rights.The impact of the competition on private listed companies,as well as measures to prevent competition for bad control rights.The article writing is studied in the logical order of "why scramble-the process of scramble-the specific performance of scramble-the impact of scramble-specific preventive measures".The opening chapter first confesses the research background,significance and overview of the theoretical basis related to control rights.Furthermore,the basic situation of the competing parties is introduced,and the analysis of the control rights is mainly attributed to the following four points: founding shareholders reduce their cash holdings,resulting in the decentralization of equity;the company’s shell resources are of high quality and obvious value;between interest groups and listed companies There are differences;the proportion of equity ownership and decision-making power are out of balance.On the basis of understanding the reasons,and then chronologically sorting out the process of Shenkai’s shareholding control,it was found that there are three main manifestations as follows: first,to compete for the seat of directors,to seek control;second,to indirectly acquire equity,Broken interest relationships;third,the secondary market increased holdings and acquired equity.Secondly,this article analyzes from the four angles of corporate governance,production and operation,operating performance and enterprise value,and studies the impact of the competition for the control of Shenkai shares on the company.From the perspective of corporate governance,there are mainly the following two aspects: First,the shareholding structure is extremely decentralized;second,the board members are frequently re-elected,and the board of directors is ineffective,and has not played a practical role.From the perspective of production and operation,the scale of total assets has shrunk and the company’s staff has been lost.From the perspective of operating performance,the quality of corporate assets is reduced and profitability is reduced.Finally,in terms of corporate value,it analyzes the stock price chart,the company’s own capital profitability,and external investors’ attitudes toward the company’s future.During the competition for control rights,the fluctuation trend of the company’s stock price was abnormal;the profitability of its own capital declined;the company’s development was confusing and uncertain,and investors lost confidence.Then,in response to the problem of bad competition in the control of Shenkai shares,the following governance measures are proposed from both internal and external aspects.Internal: First,optimize the structure of equity structure;second,regulate the operation of the board of directors;third,comprehensively evaluate the risks of introducing external investors.External: First,improve the relevant legal system;second,strengthen the supervision mechanism for illegal stock purchases;third,actively guide online media to participate in corporate governance.Finally,in order to prevent other listed companies from having similar incidents of uncontrollable control rights,the relevant research conclusions and revelations are summarized to provide experience.