Pyramidal Ownership Structure Of State-Owned Enterprises,Institutional Investors And Corporate Value

Pyramidal ownership structure is widespread in China.The existing researches on the pyramidal ownership structure are mostly concentrated in private firms,with less attention to state-owned enterprises.It is also important to understand the pyramidal ownership structure in state-owned enterprises and its corresponding operational efficiency.Some literatures suggest that reducing government interference is an important reason for the formation of pyramidal ownership structure of state-owned enterprises in China.At the same time,the existing theory holds that administrative intervention is an important reason for inefficient state-owned listed companies.Then,will the pyramidal ownership structure,as a result of the government's decentralization of control and the reduction of administrative interference,improve the performance of state-owned enterprises?The existing empirical evidences lead to inconsistent conclusions.In recent years,under the influence of the policy of "unconventional development of institutional investors" in China,institutional investors of China have had a rapid development,and have become an important part of the capital market.It has been found that institutional investors not only have the function of "value discovery",but also have the function of "value creation".Institutional investors should be able to see the value enhancement brought by the reduction of government interference in state-owned enterprises,so as to they will increase its investment in state-owned listed companies with pyramidal ownership structure and they will also play an active role in governance to promote the value of these companies after the investment.Based on this,this paper introduces the intermediary effect theory,try to put the three in a logical framework and dig up the mediating effect of the institutional investors in the process of pyramidal ownership structure influencing the value of state-owned listed companies.Firstly,this paper combs and summarizes the research achievements of scholars at home and abroad from two perspectives in accordance with a certain logical system:pyramidal ownership structure affects corporate value and institutional investors influence corporate value.After that,this paper defines the concept of the pyramidal ownership structure,institutional investors and corporate value,and analyzes the correlation between the pyramidal ownership structure,institutional investors and the value of state-owned listed companies.Meanwhile,the intermediary effect theory is introduced to analysis the mediating effect of the institutional investors in the process of pyramidal ownership structure influencing the value of state-owned listed companies.In the selection of alternative variables,this paper takes pyramidal layers and chains as alternative variables of pyramidal ownership structure,takes the shareholding ratio of pressure-resistant institutional investors as the alternative variable for institutional investors and take Tobin' Q as the alternative variable of corporate value.The results of this study show that:Both the pyramidal layers and chains have a significant positive impact on the value of state-owned listed companies;The pyramidal layers are positively related to the institutional investors' shareholding,while the correlation between the pyramidal chains and institutional investors'shareholding is not significant;The effect of partial intermediation of institutional investors is significant in the process of the pyramidal layers influencing the value of state-owned listed companies,while there is no mediating effect in the process of the pyramidal chains influencing the value of state-owned listed companies.Finally,this paper summarizes the research conclusions,proposes some countermeasures and points out the shortcomings in the research process.