Effect of Founder Control on Equity Financing and Corporate Performance-Based on Moderation of Radical Strategy

The founder is the cornerstone of the establishment of a company, and plays a vital role in the decision-making and cohesion of the company, as well as the operation of the company, and thus has a positive impact on the growth and performance of the company. This study takes founder control as the starting point, analyzes the correlation between founder control, equity financing, corporate radical strategy, and corporate performance, and selects 2010 to 2019 listed companies in China as the research sample. Based on literature review and theoretical analysis, four main hypotheses of this research are put forward. After descriptive statistical analysis, correlation statistical analysis, and empirical model testing of sample data, the following research conclusions are obtained. First, there is a negative correlation between founder control and equity financing. Second, there is a negative correlation between equity financing and corporate performance. Third, a corporate radical strategy has a negative moderating effect on the relevance between founder control and corporate performance. Fourth, equity financing has an enhanced mediating effect on the relevance between founder control and corporate performance. Fifth, the degree of corporate strategy of non-state-owned enterprises has a negative moderating effect on the correlation between founder control and corporate performance. Furthermore, based on the research conclusions above, this research puts forward the following recommendations: First, according to the different stages of enterprise development, reasonably restrict the control of the founder of the enterprise. Second, focus on long-term benefits and adopt strategic changes at the right time.