母子公司距离、内部控制质量与公司价值

Parent-subsidiary Companies Distances,Internal Control Quality and Corporate Value

内部控制质量研究通常以上市公司整体层面为分析基础,隐含假定了母子公司在空间地理和制度环境上是同质的。本文从空间地理距离和制度环境距离反映上市公司母子公司在空间地理上的分散性和制度环境上的差异性,探讨母子公司距离与内部控制质量的关系及其对公司价值的影响。研究发现,母子公司距离负向影响着内部控制质量。进一步研究表明,母子公司距离与公司价值之间呈现显著的负向关系,内部控制质量在母子公司距离与公司价值之间的关系中具有明显的中介效应。本研究为探析母子公司空间地理和制度环境异质性对内部控制质量的影响及其经济后果提供了更深层次的思考和启示。

Geographical diversification strategies of listed companies not only widen the parent-subsidiary companies＇ space geography distances and increase the difference on the institutional environment. Internal control is a core internal governance mechanism and internal control quality of listed companies is becoming the focus of regulatory agencies and investors. Numerous studies in the accounting literature examine the importance of internal control quality. Prior studies of internal control quality usually are at the listed company level, which potentially assumes parent company and subsidiary companies is homogeneous in space geography and institutional environment. Much existing literature shows that space geography and institutional environment have significant effects on agency costs and information asymmetries. Agency costs and information asymmetries lead to contracting frictions and communi- cation frictions which greatly affects internal control quality. This paper uses space geography distance and institutional environment distance to reflect the difference in space geography and institutional environment between parent company and subsidiary companies of the listed com- pany. Using China＇ s A-share market listed companies panel data from 2007 to 2013, this paper studies the relation- ships between parent-subsidiary companies＇ distances,internal control quality and corporate value. I find that there is significantly negative relationship between parent-subsidiary companies＇ distances and internal control quality, which does not only mean that parent company and subsidiary companies is heterogeneous in space geography and institutional environment, but also parent-subsidiary companies＇ distances have a greatly negative influence on in- ternal control quality. I also find that parent-subsidiary companies＇ space geography distance is negatively associat- ed with corporate value, and parent-subsidiary companies＇ institutional environment distance is negatively related to corporate value. Further research suggests that there is great mediating effect of internal control quality on the rela- tionship between parent-subsidiary companies＇ distances and corporate value. These conclusions provide helpful in- sight for analyzing the effect of heterogeneous in space geography and institutional environment of parent company and subsidiary companies on internal control quality and revealing their economic consequences. According to the a- bove findings, this study proposes some practical suggestions for managers of listed companies, stockholders and reg- ulatory authority, which are helpful for improving decision-making efficiency and enhancing the quality of internal control and protecting the interests of investors. This paper makes three contributions to the literature. First, this paper finds that there is significantly negative association between parent-subsidiary companies＇ distances and internal control quality. This paper proves the exist- ence of heterogeneity of space geography and institutional environmentbetween parent company and subsidiary com- panies of the listed company and shows how it affects internal control quality, which entends the dimension of inter- nal control study. Second, there is no consensus on economic consequence of diversification strategy which leads to diversification discount or diversification premium. This paper finds that space geography distances and institutional environment distances of parent-subsidiary companies have negatively effect on corporate value of listed company, which provides an indirect evidence for diversification discount. Third, this paper indicates that there is significant mediating effect of internal control quality on the netativeassociation between parent-subsidiary companies＇ dis- tances and corporate value, which provides new evidence of governance effect of internal control quality and enriches the study of the economic consequences of internal control. This means that the internal control quality of listed companies in China has given rise to positive effects and helps to improve the corporate value.