Research On Government's Cash Flow Right,ultimate Control Right And Chinese Listed Tourism Company's Performance

With the development of society,tourism industry plays a more and more important role in national economy.Governments at all levels treat tourism as a new growth point to promote the development of national economy.As the most advanced business form of tourism industry,listed tourism companies have made great contributions to the whole industry's performance.In the meantime,the existence of governments' control rights provide a method for the governments to intervene the listed companies.Therefore,companies' performance can be affected by the governments.The relationship between government control and corporation performance has been an eternal topic in economy researches.So,this paper uses the ultimate control theory to study the relationship among government cash flow rights,ultimate control rights and the performance of listed tourism companies.We draw a conclusion that governments are still in dominance among the ultimate controllers of Chinese listed tourism companies.Among 34 Chinese listed tourism companies,23 of those companies are ultimately controlled by governments.Meanwhile,the ultimate control rights and cash flow rights of governments are higher than non-government ultimate control rights and cash flow rights.Governments can easily intervene the management activities of those listed tourism companies.This paper made a further empirical analysis of the panel data from 2004 to 2015 chosen from these 23 Chinese listed tourism companies ultimately controlled by governments.The results show that the governments' cash flow rights have significant positive correlation with those listed tourism companies' performance.Cash flow rights generate an "alignment effect" between the governments and Chinese listed tourism companies,which makes positive stimulus to the governments.Secondly,the governments' ultimate control rights have a positive correlation to the performance of Chinese listed tourism companies.Governments' ultimate control plays a positive role in the performance of Chinese listed tourism companies.