The Research On The Relationship Between Business Group Affiliation And Enterprise Performance Based On The Macro-Economic Cycle

Enterprise management can not do without the specific macro-economic environment, the operating results of an enterprise will be affected by macro-economic change. So what impact will the macro-economic cycle have on the enterprise performance? In addition, Enterprise group is a popular form in both emerging markets and mature markets. So what effect the business group affiliation have on the enterprise performance? Do macro-economic cycle affect the relationship between the business group affiliation and enterprise performance? The systematic research of the relationship between micro enterprise behavior and the macro-economic cycle is conducive for us to understand the cause of micro enterprise behavior, understand the behavior choice of the enterprise and predict enterprise performance.With these three issues being the basic orientation, this thesis mainly discusses the relationship between the macro-economic cycle and the enterprise performance, the relationship between the business group affiliation and the enterprise performance as well as the relationship between the business group affiliation and the enterprise performance under the background of micro-economic cycle. This thesis first puts forward an analytic framework based on the theory of internal capital marke, the theory of Transaction cost, the theory of economic cycle and the theory of financing constraints. Then this thesis implements the empirical tests towards the three basic issues above by utilizing the statistics sample of China's listed companies between 2004 and 2014. Meanwhile, to further understand the economic recession which is tough for enterprising operation, we check whether the business group affiliation have different impact on enterprise performance when the enterprise has different enterprise scale or property right. In brief, this thesis takes a further research into the relationship between the business group affiliation and enterprise performance from the background of economic recession, taking into account the factors of enterprise scale and property right.Our research has come to the conclusion that the enterprise performance of the boom period is higher than the economic downturn period; business group affiliation leads to better enterprise performance. Compared with the economic rising period, business group affiliation leads to better enterprise performance during the economic decline period. Further, it turns out that, in contrast to large-scale enterprises performance, the promotion of business group affiliation on Small-scale enterprises performance is more strong during the economic decline period. At the same time, in contrast to large-scale enterprises performance, the promotion of business group affiliation on State-owned enterprises performance is more strong during the economic decline period. Based on this conclusion, this thesis finally presents some revelations about what the business group can do to play full role of internal capital markets and How can enterprises cope with macro-economic change.