A Case Study On The Financial Effect Of The Transfer Of The Control Right Of Autohome

Control is the core and key of corporate governance mechanism.The allocation of control right is a state of game equilibrium among the stakeholders of the contract.The incompleteness of the contract makes the initial allocation of control right very important.At the same time,the allocation of control right is the direct embodiment of the principal-agent relationship of equity.The reasonable allocation of control right makes the efficiency of resource utilization of enterprises improve.However,there are some problems between founders and external investors,such as inconsistent goals and asymmetric information,which lead to conflicts between them.In the process of control transfer,more problems often emerge.Based on the principal-agent theory,equity balance theory,corporate governance theory and stakeholder management theory,this paper discusses the relationship between the transfer of control rights of external investors and founders of enterprises,and takes the transfer of control rights of autohome as an example,trying to put forward countermeasures to avoid the negative impact of the transfer of control rights.After introducing the relevant theoretical basis of the control transfer,this paper combs the origin and background of the control transfer event of auto home,and reveals that the problems in the equity structure,the conflict between the private interests of the management and the divergence between the institutional investors and the strategic objectives of the founder of the enterprise are the direct reasons for the control transfer event of auto home.The market of control right can identify and correct the effect of corporate governance.This transfer of control right has a supervisory effect on the auto house,helps to solve the agency problem,and urges the management to return to the goal of maximizing shareholder wealth.It is an effective external governance mechanism.The paper concludes that the transfer of control right can not only bring significant positive wealth effect to enterprises,but also make the equity structure of enterprises more reasonable.At the same time,the paper also puts forward some ways to avoid the negative effects of control transfer events,such as expanding new financing channels,establishing effective corporate governance programs,etc.,hoping to be helpful for the research of control transfer events of listed companies.