Research About The Influence Of Profit Distribution To Group-affiliated Firms' Performance

With economic development, enterprise group composed of the company's widespread phenomenon in the country. United States 60 years from the 20th century the United States began large-scale corporate mergers, China began to make great efforts to develop the company and began to build from the mid-80s group. With the development of large and flourishing group of companies, many scholars began to study the group internal capital market efficiency issues related to the distribution of profits. Internal capital markets group linked to external markets, and co-exist in the current economic system. With the efficiency of the two changes, both internal and external market, there will be substitutes for one another phenomenon. Financing, funds management group, the parent company will not only enhance the financial institutions to credit the level of the whole group, but also enhance its subsidiaries under the guidance of subordinates ability and regulatory capacity. In addition the Group parent company, the integrated use of various resources, with the way the distribution of profits between enterprises in the Group under the transfer would not only improve the efficiency of use of group funds, but will also play a role in risk diversification. Internal capital markets in the group to establish a reasonable profit on the transfer pricing mechanism to provide for the management of a subsidiary, to balance the conflict of interests between the subsidiaries incentives. Because a large part of the listed companies in China is formed by the reorganization of state-owned enterprises, listed companies after the restructuring of external financing on the capital market more prominent, which makes the company's internal capital market, the rapid development of related party transactions are also common. Capital markets and the severe lack of liquidity caused by asymmetric information, "adverse selection" and other issues make use of many groups within the parent company and the occupation of the capital market behavior to the distribution of benefits listed subsidiaries plunder the resources. To win the trust of investors and access to capital in the information disclosure of listed companies will often profit distribution and appropriation of these deliberate acts of concealment, or distribution of benefits and the use of accounting rules to their advantage should disclose the information tampering, which were results of earnings management. These actions not only affect the quality of information disclosure, but also harm the interests of minority shareholders. Therefore, the study listed the distribution of profits within the capital markets, the impact of acts of subordinate enterprises of great significance.This paper discusses the distribution of corporate profits after the Group of affiliated companies of the Group's performance of the company. Collected in the CCER on the general governance of listed companies and the financial structure of the database 85 manufacturing enterprises in the database of relevant data for 2005-2009 found that: under the Enterprise Group of the Group companies have a negative impact on performance; Parent Company ( Group subordinate enterprise) but a higher proportion of the holding led to a lower level of profit distribution, the distribution of profits and thus reduce the impact on the Group of affiliated enterprises, and enterprise groups, the size distribution of profits is difficult to determine the extent, then it difficult to determine how its impact on performance; This article is found in enterprise groups under the distribution of profits between enterprises with low efficiency, low efficiency of the conclusions provided evidence to support the distribution of profits that the company under its internal profit distribution the performance of enterprises has a negative impact. Finally, this paper strengthen the shareholder responsibility, reasonable arrangements for internal organizational structure and internal resources, the transfer price mechanism and other aspects of some relevant suggestions.