Enterprise Group, And Risk Governance Of Listed Companies

Group of today is a typical feature of the development of China’s enterprisesform. Group is able to build better balance mechanism, and a more effective way tointegrate resources and mobilize the enthusiasm of member companies to promoteefficiency of business operations, thus conglomerates have become the backbone ofChina’s market economy. But our own inherent system complexity and asymmetry ofinformation, so that members of the organization are more likely to produce and makeopportunistic tendencies and inappropriate behavior, so that the Group’s operatinginefficiencies, increasing member companies risk factors.In China, most listed companies controlled by the Group and the Group’scorporate quality assets are mainly concentrated in the listed company of theirsubordinates. Listed companies as a corporate group open, transparent window, itsbusiness and development strategies and governance factors affecting the Group iswell received, but also from the side reaction of the Group’s governance, performanceand so on. Especially in the unstable political situation, the case of the weakeconomic environment, the pros and cons of conglomerate governance mechanism isa direct or indirect impact on the listed company’s level of risk. It is a closerelationship between the Group and its listed companies, as well as the risk of thetransmission mechanism of the Group of listed companies, making the Group and itsaffiliated companies received extensive attention of scholars.This paper summarizes the characteristics of corporate consolidation andgovernance structure of the Group, the relevant literature between the varioussubsidiaries of the Group’s performance and risk and corporate performance, etc.,found little empirical research group affiliated relationship between corporategovernance and performance, especially on business Group quality managementenvironment can effectively reduce the risk of listed companies, thus stabilizing andpromoting research to improve the performance of listed companies is still notcomprehensive, enterprise group governance of listed companies and its influencingfactors research is not in place, in addition, from the control group, Comprehensivestudy of state-owned properties and perspective of corporate governance listingfluctuate even more rare. Therefore, on the basis of this paper, through the Enterprise Group and its holding company listed on the collation of data, select the relevant data315enterprise groups to collect relevant data of listed companies, after screeningusing the2008-20128012sample data, through large sample empirical test, carriedout the following studies:First examine whether the listed company controlled by the nature of the groupand the group have an impact on the company’s risk. Secondly, the influence ofenterprise group level of control, such as the separation of ownership and controlvariables on the risk of listed companies. Among them, the use of standard riskindicators listed total assets of nearly three years, the net profit margin of difference,the standard deviation of total assets net profit margin of nearly three years tomeasure. Group-level governance variables using the Group’s control, the degree ofseparation of ownership and whether the Group controls, the group nature, board size,proportion of independent directors, the proportion of independent directors, serves aschairman of the board and so on. And the use of various financial indicators of listedcompanies and other control variables. By large sample empirical tests concluded:Group governance environment can significantly control the risks listed companies,especially state-owned nature of the group; owned conglomerate pyramid level ofcontrol and risk of listed companies a significant negative correlation, on the contrary,the private group control layer and Risk is a positive correlation, showing morecontrol level, the greater the risk, performance fluctuations are more intense; degreeof separation of ownership and control and ownership of listed companies with asignificant risk related to state-owned groups and private group have differentperformance. State-owned group showed negative correlation, while the private groupis also positive.