Research On The Micro Economic Effects And Macro Influential Factors Of Pyramid Structure

In the process of economic and social development,enterprises play a tremendous role as important participants in economic activities.It is a microscopic main body of a country's economic development.As a ubiquitous ownership structure in the world,pyramidal structure has received much attention in academic field.Taking a general survey of researches about pyramid,scholars are mainly study its prevalence from the reasons and incentives of establishment.According to classical theory,the ultimate controlling shareholder can acquire the control rights of a corporate by less part of cash flow through pyramid structure and this kind of separation is the incentive to set up pyramids.Another theory report that this is not the only reason to separate cash flow rights and control rights in order to transfer capital,on the contrary,the expection to transfer capital make it optimal for control shareholders to set up pyramids.Besides,internal capital market(ICM)theory,political advantage theory and coinsurance theory are all the theoretical basis of the existence of pyramids.Other researches about pyramids mainly focus on its economic consequences,such as tunneling,propping,acquisitions,tax avoidance and performance,etc.However,it should be pointed out that,existing research about pyramid mainly focus on relevant problems caused by separation and ICM,rarely literatures analyze characteristics of pyramidal firms and most of them study state-owned enterprises and private enterprises separately.Moreover,existing research haven't offer an integrated framework to study controllers' behavior from the perspective of whole business group.Finally,the development of business groups is highly related to changes of macro economy.Many researches consider that macroeconomic environment and policies are important factors that influence the behaviors and organizations of micro corporations,while existing study didn't pay more attention on this.Real cases show that,pyramidal structure has many consequences on micro,macro and network levels.On micro perspective,pyramids can bring information asymmetry and agency problems which may damage the benefits of minority shareholders through self-dealing,related guarantee,assets pricing,transfer payments and etc.From macro perspective,pyramidal business groups play an important role on economic development and financial stability.And from the perspective of network organization,pyramid structure is a kind of network established by ownership which gathering many enterprises together to.form a group.By utilizing the data of characteristics of ownership structures of Chinese listed firms from 2004 to 2014,this paper investigates the micro economic consequences of pyramids and its connections with macro economy.We use agency theory,ICM theory,external market substituted theory,political advantage theoty and risk coinsurance theory as our theoretical framework,besides we use both macro and micro data to do empirical analysis.Chapter 1 tells the research questions and research methods of this paper.In chapter 2 we survey previous literatures about pyramids and further put forward the questions of consequences,group management and control,and development of pyramids.Importantly,we come up with a new theory of "control chains".In chapter 3 we take high lights of the measure system of pyramids and describe the general features of pyramid structure in China.Chapter 4 begins with the empirical research.We analyze the micro economic consequences of pyramids from the perspective of large shareholders'expropriation and tax avoidance.In the next chapter,we explore the synergistic effect in pyramidal holding groups.And in chapter 6,we investigate whether macro economic environment has effect on the development of pyramid business group.To summarize,this study presents a whole survey of Chinese pyramidal structures and analyze the relationship between the features of pyramids with its economic consequences.Furthermore,we analyze the influence of macro economy on the development of pyramids,and report that pyramid structure is a kind of mechanism against macroeconomic uncertainty.Meanwhile,we view pyramid...