Study on Control Rights Arrangement in Entrepreneurial Financing-Perspective of Incentive and Restrictive on Entrepreneur

摘要

Based on recognizing entrepreneur as "central contractor", as an improvement, this article introduces external warning system and internal control system operated by investors, and provides a "incentive and restrictive on entrepreneur" viewpoint on control rights arrangement in entrepreneurial financing, which is reviewed by the two systems. Analyzing basic models of expected profit of investor and entrepreneur, the studies in the article discusses: (1) basic conditions of entrepreneurial financing; (2)right of liquidation preference and incentive on entrepreneur; (3) fight of investor's withdraw and restrict of entrepreneur; (4) right of investor's change entrepreneur and incentive and restrictive on entrepreneur;and (5) best arrangement of equity proportion between investor and entrepreneur.