Influence Of Pyramida Structure On The Value Of Private Listed Companies—

Studies have shown that the phenomenon of concentrated stock exists in the most companies of the world. The majority shareholder control company by holding a small number of stock right, we put this structure into controlling minority shareholders. It is existence by stock which includes building a pyramid ownership structure, cross-shareholdings, issuing shares with multiple voting rights. The pyramid shareholding structure is the most popular.Pyramid ownership structure is a pyramid similar to the shareholding structure, in which the structure, the company is controlled finally by the person who is on top of the tower, which controls the first layer of the company, and then the first line of corporate controls the second tier of companies, as by analogy to the end. The most prominent features of the Pyramid ownership structure is the separation between the right of control and cash control right. the ultimate holding only need to relative lower the cash flow rights to control the company, the asymmetry between the rights and obligations also makes the actual controller have enough incentives to occupation listed companies, resources, damage to small and medium shareholders.This pyramid ownership structure also exist in most China's private listed companies, In this paper, the research object is the all of the private companies in the entire stock market. Under the premise of distinguishing the board and the SME board, comparing study of the relationship between the pyramid shareholding structure and the value of private enterprises obtained the following significant conclusions:1 There is a obvious negative correlation between the major shareholders'voting rights at the bottom of listed companies and corporate value. because the greater the right to vote, the more power of the large shareholders to invade and occupany the interests of small shareholders, will further damage the corporate value.2 There is also a obvious negative correlation between the cash flow right wihich holded by the major shareholders and the corporate value. The main reason is the trend of predacity dividend the profits and the most of the cash used to divided. The loss of the investment opportunities result to decrease in value of the company;3 Separation factor (Cash flow rights / Control rights) and the enterprise value was positively correlated.4 The enterprises in the main board of the stock market have greater values than those in the small and meduim sized board of the stock market. In the end of the paper, based on protection the benefit for small-medium corporate, enhance the company value, there are two opinions for the policy makers'reference.1 Improve legal system on the protection of the interests of small and medium stock holders2 Strengthen, refine the timeliness and authenticity of information disclosure for listed companies. increasing information transparency.