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Characteristics Of Pyramid Structure, R&D Investment And Enterprise Market Value

Posted on:2016-04-13Degree:MasterType:Thesis
Country:ChinaCandidate:K K ZhengFull Text:PDF
GTID:2309330479983321Subject:Finance
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Pyramid structure is widely used in China’s private listing corporation. The current study shows that, the separation of two rights in pyramid structure has produced strong rights and interests leverage effect. On the one hand, it provides convenience for the tunneling of large shareholders; on the other hand, pyramid structure enhance the capital power of controlling shareholders, which is helpful for them to create internal capital markets to ease financing constraints, as well as enhancing its ability to support the listed company. The two sides of pyramid structure has always been a hot spot of academic research.Meanwhile, a large number of academics studied the pyramid structure’s impact on enterprises market value, but past studies measure the features of pyramid structure mostly on the degree of separation of controlling rights and cash flow rights, seldom involved studying the complexity of pyramid structure and pyramid structure layer quality. In this paper, we take China’s private listed companies from 2009 to 2013 as samples, and use the separation of controlling rights and cash flow rights, the complexity and layer quality to characterize the pyramid structure. It shows the relationships of pyramid structure characteristics and enterprise market value, the R&D investment and enterprises market value, finally it tests the mediating effect of R&D investment on pyramid structure features and enterprise market value.The results show that: ① If other conditions are the same, the higher complexity of pyramid structure, the lower the enterprises market value of private listed companies; the greater the degree of separation of pyramid structure of controlling rights and cash flow rights, the lower the enterprises market value of private listed companies; pyramid layer quality and private enterprises market value are highly correlated. ② The greater the degree of the separation of two rights or the complexity, the less R&D investment of private listed companies; Pyramid layer quality and R&D investment intensity are positively correlated. ③ R&D investment and enterprises market value of private listed company are significantly positive correlation. ④ R&D investment has partial mediating effect on pyramid structure and enterprise market value.According to the results, this paper put forward relevant policy recommendations to both the private listed companies and the government in the end.
Keywords/Search Tags:Private listed company, Pyramid structure, R&D investment, Enterprise market value
PDF Full Text Request
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