It is generally believed in academia that there are two theoretical explanations of tunneling and financing advantage for the creation of pyramidal structure. However, there is no definitive conclusion on which explan...It is generally believed in academia that there are two theoretical explanations of tunneling and financing advantage for the creation of pyramidal structure. However, there is no definitive conclusion on which explanation holds sway. Based on non-equilibrium panel data of seven years between 2004 and 2010, this empirical study uses the product market competition variables of ＂inter-sector competition＂ and ＂intra-sector competition＂ and the hierarchy and complexity of pyramidal structure, examines the correlation between pyramidal structure of Chinese private manufacturing listed firms and product market competition and patterns of change, and reveals the major causes of pyramidal structure. Empirical result indicates that, for Chinese private manufacturing listed companies, there is a significant negative correlation between product market competition and the hierarchy and complexity of pyramidal structure, which indicates that the creation of pyramidal structure has a preference on tunneling by controlling shareholders. On the basis of further considerations on corporate tunneling and financing restraint categorization, high-tunneling firms and firms with low financing restraint demonstrate significant tunneling motivations; low-tunneling firms and firms with high financing restraint demonstrate significant effect of financing advantage, which further testifies both theoretical explanations for the creation of pyramidal structure. Conclusions of these studies have not only enriched and supplemented relevant studies on the root causes for the creation of pyramidal structure by Chinese private business groups, but provide practical support for firms to make correct and effective use of pyramidal structure as well.展开更多
after 30 years of development, private enterprise has become an important pillar of our national economy.With the accelerated process of economic globalization, the private enterprises will face more intense competiti...after 30 years of development, private enterprise has become an important pillar of our national economy.With the accelerated process of economic globalization, the private enterprises will face more intense competition in the domestic market. At the same time in order to obtain various resources, access to the vast market and foreign advanced technology, many private enterprises active or passive choice of ＂going out＂, through the international road to break the bottleneck of development.展开更多
In recent years, the number of the listing corporations in China is increasing, and the promotion of the national economic development is also more obvious. But in the process, because of the short time onto the marke...In recent years, the number of the listing corporations in China is increasing, and the promotion of the national economic development is also more obvious. But in the process, because of the short time onto the market and the lack of the expvrience, some of the listed companies also cannot be compared with the enterprises in the western developed countries in a large extent. Especially in the aspect of the financial management, there are many defects. For example, the control efforts of the financial risks arc inadequate, and the awareness of the management personnel and the employees on the risks is weak, and so on In this case, the listed corporations must strengthen the management of the company＇s financial risks, develop the more comprehensive financial risk managernent system, and thus ensurc that the companies can have the healthy, stable and sustainable development.展开更多
文摘It is generally believed in academia that there are two theoretical explanations of tunneling and financing advantage for the creation of pyramidal structure. However, there is no definitive conclusion on which explanation holds sway. Based on non-equilibrium panel data of seven years between 2004 and 2010, this empirical study uses the product market competition variables of ＂inter-sector competition＂ and ＂intra-sector competition＂ and the hierarchy and complexity of pyramidal structure, examines the correlation between pyramidal structure of Chinese private manufacturing listed firms and product market competition and patterns of change, and reveals the major causes of pyramidal structure. Empirical result indicates that, for Chinese private manufacturing listed companies, there is a significant negative correlation between product market competition and the hierarchy and complexity of pyramidal structure, which indicates that the creation of pyramidal structure has a preference on tunneling by controlling shareholders. On the basis of further considerations on corporate tunneling and financing restraint categorization, high-tunneling firms and firms with low financing restraint demonstrate significant tunneling motivations; low-tunneling firms and firms with high financing restraint demonstrate significant effect of financing advantage, which further testifies both theoretical explanations for the creation of pyramidal structure. Conclusions of these studies have not only enriched and supplemented relevant studies on the root causes for the creation of pyramidal structure by Chinese private business groups, but provide practical support for firms to make correct and effective use of pyramidal structure as well.
文摘after 30 years of development, private enterprise has become an important pillar of our national economy.With the accelerated process of economic globalization, the private enterprises will face more intense competition in the domestic market. At the same time in order to obtain various resources, access to the vast market and foreign advanced technology, many private enterprises active or passive choice of ＂going out＂, through the international road to break the bottleneck of development.
文摘In recent years, the number of the listing corporations in China is increasing, and the promotion of the national economic development is also more obvious. But in the process, because of the short time onto the market and the lack of the expvrience, some of the listed companies also cannot be compared with the enterprises in the western developed countries in a large extent. Especially in the aspect of the financial management, there are many defects. For example, the control efforts of the financial risks arc inadequate, and the awareness of the management personnel and the employees on the risks is weak, and so on In this case, the listed corporations must strengthen the management of the company＇s financial risks, develop the more comprehensive financial risk managernent system, and thus ensurc that the companies can have the healthy, stable and sustainable development.
