Research On Private Enterprise Group Controller Holding,Internal Capital Market Alienation And Economic Consequences

In recent years,the new development of China's macro economy,the continued expansion of the A-share market,and the continued high level of mergers and acquisitions have led to the emergence of many private capital enterprises.Private-owned enterprise groups are at a stage of rapid development.The enterprise groups build an internal capital market with listed companies as the core,which promotes the rapid appreciation of the wealth.However,the chain negative collapse of some enterprise groups has caused serious negative consequences.Whether there are problems,what problems and their internal mechanism in the internal capital market have aroused widespread attention.Based on the situation,this paper firstly analyzes the motivation of internal capital market alienation from the theory.Through a case on Dakang Food & Agriculture,we study the operation of the internal capital market of “Pengxin enterprise group” and the essence of internal capital market alienation under the operation by the “Pengxin enterprise group” holding Dakang Food & Agriculture.Then,based on the case,the paper analyzes the manifestation,motivation and degree of alienation of internal capital market alienation,and the way that enterprise group holding leads to the alienation of internal capital market.Next,the paper further analyzes the institutional origin of the enterprise group holding the listed company at a low price to plunder the listed company.Finally,the paper analyze the economic consequences of the alienation of internal capital market.Through analysis,this paper comes to the conclusions:(1)the alienation of the internal capital market built with listed companies as the core is mainly manifested as the plunder of the listed company.The forms of alienation in the internal capital market include not only the common means of interest transmission,such as direct appropriation and connected purchase-and-sale transactions,but also more covert and indirect means such as equity pledge and connected merger and acquisition;(2)in the enterprise group,the PBC and management rent-seeking under the multi-agency relationship,and the separation of control and ownership under the ownership pyramid structure,are the key factors that induce the alienation of the internal capital market;(3)the imperfection of the system leads to the "innate deficiency" of the internal capital market,which reduces the "defense degree" and "tunneling cost" of the listed company to the benefit encroachment of the enterprise group.That strengthens the ability of the enterprise group to "tunnel" the listed company,and thus aggravates the alienation degree of the internal capital market;(4)the specific path for the alienation of the internal capital market caused by the enterprise group holding is as follows: under the leveraged cyclic expansion of the enterprise group,there is a large amount of capital gap,which leads to the "shell renting" behavior of the enterprise group,thus leading to the alienation of the internal capital market;(5)the administrative intervention under the IPO approval system in China has given rise to the "IPO with diseases" of politically related enterprises,and provided opportunities and convenience for the original controller to "sell the shell" to exit the listed companies to maximize the interests and for enterprise group to seize the listed companies with low-priced capital;(6)the dissimilation of internal capital market has caused serious negative impact on the business,capital structure and corporate governance of listed companies.In view of the research conclusions,this paper also puts forward some suggestions to promote the healthy development and sustainable operation of the internal capital market of Chinese enterprise groups.This paper expounds the main ideas and contents from the following seven chapters:The first chapter is the introduction,which introduces the research background,research significance,research content and logical framework,research contribution and deficiency of this paper.The second chapter is a literature review,including the emergence and development of the theory of internal capital market,the existence of internal capital market,the relationship between internal and external capital market,and the allocative efficiency of internal capital market.The third chapter is the theoretical basis,which introduces the theory of internal capital market,the theory of ownership and control,the theory of agency and the theory of tunneling,and provides the theoretical basis for the analysis of the causes of the alienation of internal capital market.The fourth chapter is the theoretical analysis,based on the multiple agency theory and pyramid ownership structure theory to analyze the causes of internal capital market alienation.The fifth chapter is the case introduction,which introduces the operation process of "Pengxin enterprise group" through private placement holding listed company Dakang Food & Agriculture,and the analysis of the benefit embezzlement reflected in the operation.Chapter six is the case analysis.Based on the analysis of the case that is introduced,the paper firstly analyzes the manifestation,motivation and degree of alienation of internal capital market alienation,and specific path that enterprise groups lead to alienation of internal capital markets.Then this paper further mines the system root of low-priced holdings of listed companies to raid.Finally from the business,capital structure and corporate governance of Dakang Food & Agriculture,we analyze the economic consequences of internal capital market alienation.Chapter seven is research conclusions and suggestions.This paper comes to the conclusions on the internal capital market alienation causes,manifestations,degree of alienation,specific path that enterprise group holdings lead to alienation of internal capital markets,the system root of enterprise group holding listed companies at a low price and the economic consequences of internal capital market alienation.To improve internal capital market building and operation,this paper puts forward related suggestions.This paper made the following contributions: existing research on the internal capital market alienation mainly focus on the motivation,but few researches are about the degree of internal capital market alienation,the mechanism of enterprise group holding leading to the internal capital market alienation and enterprise group taking control of listed companies at a low price to plunder.Based on this,this paper analyzes the degree of alienation of the internal capital market from the institutional factors,deduces the specific path of the alienation of the internal capital market caused by the enterprise group holding from the characteristics of the enterprise group itself,and analyzes the institutional root behind the fact that the enterprise group can obtain the control right of the listed company at a low price to plunder.The shortcomings of this paper are as follows: due to the limitation of personal ability,no quantitative analysis is made on the alienation motivation and degree of internal capital market,which needs to be supplemented in the next paper.This paper only studied a single case,the universality is insufficient.