Theoretical And Empirical Analysis On Behavior Of The Clusters In Groups

The phenomenon of corporation group in recent years in China is investigated in this paper particularly. And the ways how the group controls and manipulates the listed companies by pyramid structure are analyzed as well. What's more, a panel date set is proposed, which contains both pre- and post attend the group financial and ownership information on publicly listed firms in Shanghai and Shenzhen Stock Exchanges, and this firms are controlled by some corporation group. The effects of listed companies in the corporation are explored. We find the group is inclined to manipulate the profit of listed company .They whould like to choose the least costs to control listed companies and make full use of the recourses of them, no matter it's good to the company or not. We also find the ROE of the companies is irrational by analyses the relations among the capital structure, financing mode, assets liquidity and so on. Finally, institutional background which leads to this phenomenon is uncovered and it is suggested that corporation group should be evaluated properly, and at the same time, inspective work should be done to the best, and the institution and the should be perfected, the institution and legal system should be amended gradually as well.