| The establishment of industrial funds by the listed companies can identify favorable investment opportunities and ease financing constraints,which will promote industrial integration and transformation and upgrading.Since Hunan Dakang Pasture Farming Co.,Ltd.and Heaven-Sent Capital Management Group Co.,Ltd.established the first industrial fund in 2011,other listed companies have followed suit.With the introduction of a series of policies creating good market opportunities,the number and scale of industrial funds have been growing rapidly,and this model has become a more common type of private equity funds.Regrettably,the academic community has few research results on this model,and lacks research achievement on motive and value creation effects.At present,the research results of traditional industrial funds at home and abroad mainly focus on operation mode,risk management and market performance.However,for the listed companies establishing industrial funds with"Chinese characteristics",there are few relevant research results,mainly focusing on qualitative research,especially case studies.With the increase in the participation of listed companies in the establishment of industrial funds in recent years,the relevant database has become more and more complete,which provides a possibility for quantitative research on the establishment and market reaction of this new model.Using a sample of Chinese listed companies that set up industry funds from 2011 to 2017,and based on the investment opportunities relevant theory,pecking order theory and signal transmission theory,this paper follows the research logic of "Industry Funds Overview-Establishing Motive-Market Response",and links the establishing motive and market reaction from the perspective of investment and financing.In further study,the paper chooses Fan Gang Index as a grouping variable to explore the impact of marketization on the value creation effect of industrial funds.This paper uses multiple regression and event study methods to test these,and the results are as follows.Firstly,the more investment opportunities the listed companies facing,the more likely they are to set up industrial funds.Secondly,when financing constraints are serious,the more investment opportunities the listed companies facing,the more inclined they are to set up industrial funds.Thirdly,the establishment of industrial funds will gain significant cumulative excess returns and market pursuits,resulting in wealth effects.Fourthly,the market reaction of the industry funds investing in strategic emerging industries are stronger than the funds investing in other fields.Fifthly,the higher level of financing constraints the listed companies facing,the stronger market reaction the industrial funds will cause.Sixthly,when the degree of marketization is high,investors are more optimistic in industrial funds investing in strategic emerging industries,and the market reaction is stronger.Similarly,companies with higher level of financing constraints have increased their value after setting up industrial funds.The findings of this paper provide empirical evidences for the drivers and market reactions of the listed companies setting up industrial funds,supplementing and enriching the literature on fund motive research and capital market response research.At the same time,this paper helps to explain the investment trends of the listed companies from a new perspective,and then finds the micro-dynamic mechanism to promote industrial restructuring.In addition,the discoveries of industrial fund establishment motive,wealth effect and investment and financing value creation effect provide theoretical support for the listed companies to achieve industrial transformation and upgrading,deepen the government's function reform,and strengthen investor's value investment education.This paper is expected to deepen the understanding of the interaction process between the listed companies and market investors in theory field and practice field. |
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