A Case Study On Founder Control Transfer And Corporate Performance

China’s private enterprises play a decisive role in the market economy.With the rapid economic development brought by the deepening of reform and opening up,more private enterprises become the backbone of China’s economic growth.However,20 years ago,most private enterprises failed to maintain their business and were sifted out due to lacking competence.Some enterprises that want to survive have to star transforming and upgrading,various difficulties and crises were inevitable.Therefore,enterprise managers and scholars in related fields focus on how to overcoming with these crises,and helping the enterprises to survive.Based on summarizing the relevant researches,this paper makes a systematic study on the relationship between the transfer of control and corporate performance by using the theory of corporate control and the method of combining normative analysis with case analysis.As a result,the corporate performance and operational efficiency have been greatly improved after the founder control being transferred.Moreover,corporate governance and product innovation have been improved significantly.Based on the case study of founder’s control transfer in private enterprises,this paper cocluded that under the appropriate circumstances,founder’s control transfer in private enterprises can greatly improve enterprise performance and management efficiency,and promote the sustained and rapid development of enterprises under appropriate circumstances.The successful transfer of the founder’s control has greatly enhanced the confidence of other private enterprises in their transformationBesides,the difficulties and crises encountered in the transformation process have also brought out some warnings to other private enterprises in their transformation.