Acquisition and maintenance of corporate control: a multiple-case study from the perspective of founders

【Author】

WANG Chunyan;LIN Runhui;YUAN Qinghong;LI Ya;LI Fei

【Institution】

Business School of Nankai University;Business School of Tianjin University of Finance & Economics;Business School of Nankai University;Business School of Nankai University;Business School of Nankai University;Business School of Nankai University

【Abstract】

Fight for authority between the founder and co-founder(s) or investor(s) has attracted much practical and theoretical attention. This paper, from the perspective of multiple-role enterprise founders, summarized and analyzed the corporate authority evolution of Ma Yun and his team from Alibaba, Zuckerberg from Facebook, and Wu Changjiang from NVC as three cases and deconstructed the founders’ authority evolution on the basis of resource distribution and institutional arrangement during enterprise development. Corporate property-based resources, key knowledge-based resources and relation-based resources are the bases of founders in seeking power. Meanwhile, institutional arrangement is another way of acquiring and maintaining power. In addition, the power basis of founders dynamically changes with enterprise development. Dilution of financial resources, instability of relation-based resources and change of criticality of knowledge-based resources all influence the authority of founders. On the basis of resources privately owned or available to the founders, we can summarize their approaches to acquire authority, maintain related stock rights, transfer and share power, and possess information and resources. Meanwhile, the structural control achieved by institutionalization is another means beyond the personal control of founders. This paper expanded the research on corporate governance authority and provided certain practical suggestions in designing corporate governance structure and financing options for the entrepreneurs who often face authority fight.

【Keywords】

founder;corporate control;Alibaba;Facebook;NVC

References

To explore the background and basis of the node document

Springer Journals Database

Total: 42 articles

  • [1] LIU Lei, WAN Di fang (School of Management, Xi'an Jiaotong University, Xi'an 710049,China), Crucial and General Control Rights in Firms, China Industrial Economy,
  • [2] Li Xinchun,Su Qi and Dong Wenzhuo(School of Business, Sun Yat-sen University Chinese German Research Center for Corporate Governance, Sun Yat-sen University), Corporate Governance and Entrepreneurship, Economic Research Journal,
  • [3] Yang Ruilong and Nie Huihua(School of Economics, Renmin University of China), Incomplete Contracting Theory: A Survey, Economic Research Journal,
  • [4] YU Jing (Institute of Industrial Economics CASS, Beijing 100836, China), American Corporate Governance :A Historical Analysis Focused on the Struggle for the Right of Control, China Industrial Economics,

More>>