An Empirical Research On The Relationship Among Pyramid Shareholding Structure,Diversified Strategy And Business Volatility

As one of the strategies enterprises can choose, diversification is a major issue relating to the direction of enterprise development. Therefore, the sources of diversification motives and the economic consequences of diversification become the emphasis we discuss today. Enterprise implementing diversification strategy is usually in order to maximize use of market opportunities, so as to achieve the profit maximization, At the same time making fully effective use of enterprise internal resources, decentralized management risk, to maintain the stability of the business income so as to realize the enterprise long-term stable development.This paper tries to research the relationship between diversity and enterprise management fluctuation. With the development of market economy, our country private enterprise no matter from the quantity or the scale have distinguished development, gradually become the main power to the development of the national economy. And be in our country private enterprise of listed in most tend to by constructing a pyramid shareholding structure to control, this kind of structure due to multiple levels and multiple chain for a listed company to control, which control and cash flow of official separation, in most cases will form with a small cash flow rights can get greater control over the situation. This will increase the controlling shareholders of listed company’s empty motivation. In this kind of motive controlling shareholders under the implementation multiplication strategy motivation whether or for business enterprises maximize profits, whether on the stability of the enterprise value are positive role?From a financial level, diversity makes surplus fluctuation and management of cash flow volatility smoothly. With the development of market economy, in our country private enterprise no matter from the quantity or the scale have distinguished development, and gradually become the main power to the development of the national economy. And be in our country private enterprise in most tend to by constructing a pyramid shareholding structure of listed company to control, this kind of structure due to multiple levels and multiple chain for a listed company to control, which control and cash flow of official separation, in most cases will form with a small cash flow rights can get greater control over the situation. This will increase the controlling shareholders of listed company’s empty motivation. In this kind of motive controlling shareholders under the implementation multiplication strategy motivation whether or for business enterprises maximize profits, whether on the stability of the enterprise value are positive role?This paper will study the other question is that under the pyramid shareholding structure whether diversification strategy will become a tunneling platform, to make diversification strategic lose the function of lower volatility even have the opposite effect. Through the concrete research we found that the pyramid shareholding structure under control features the diversity of not only remove business fluctuation effect, but increases the business fluctuation; In the pyramid shareholding structure features of cash flow right next to the diversification of business fluctuation has positive impact, can effectively reduce business fluctuation; In the pyramid shareholding structure two right separation characteristics of diversified lost remove business fluctuation effect, reasonable explanation is empty motive diversification becomes under the ultimate controlling shareholders or platform, making diversified lost the original stable business fluctuation effect, to the enterprise value caused negative influence.