Cross-Ownership And Enterprise Diversification

Influenced by the Western business model,China also set off an upsurge of diversification in the 1990 s,and became the main model of enterprise expansion gradually.With the continuous development of diversified operation,the diversified income brought by scope economy has shrunk year by year,and its negative impact has become increasingly prominent.Therefore,how to optimize the diversification behavior of Chinese enterprises has become a major problem to be solved urgently in academia and industry.As an important stakeholder of the enterprise,shareholders have an important impact on the business decisionmaking of the enterprise.In recent years,with the continuous development and improvement of the capital market,investors with capital advantages will participate in other enterprises in the same industry in order to seek greater economic interests,resulting in the phenomenon of shareholder connection.Then,can the emergence of cross-ownership have an impact on the diversification of enterprises and how? Taking the Ashare listed companies in Shanghai and Shenzhen markets from 2007 to 2019 as the research sample,this thesis uses normative analysis and empirical analysis to carry out theoretical deduction and data test,and deeply explores the influence and influence mechanism of cross-ownership on enterprise diversification from three aspects: resource effect,governance effect and information effect;From the perspectives of crossownership heterogeneity,enterprise characteristics and institutional environment,this thesis analyzes the impact of shareholder heterogeneity and the difference of internal and external environment on the heterogeneity of cross-ownership and enterprise diversification;In addition,this thesis further analyzes the deeper economic consequences of cross-ownership from the perspective of asset glass degree and diversified management value.The specific research results are as follows:First,the resource effect,governance effect and information effect of cross-ownership will not only have a "refocusing" impact on the diversified operation of enterprises,that promote the connected enterprises to return to the main business operation through resource sharing and collaborative governance.But also it will have an "expansion" impact on the diversified operation of enterprises,that is,the cross-ownership will expand due to the interests of scope economy and market monopoly.After a series of tests,the results show that cross-ownership can effectively reduce the degree of diversification of enterprises,showing a "refocusing effect".Second,in order to clarify the influence mechanism of the refocusing effect of cross-ownership,this thesis makes an in-depth mechanism investigation from the resource effect,governance effect and information effect.The mechanism test mainly starts from the perspective of the motivation of diversification.Enterprises alleviate financing constraints by building an internal capital market through diversification.In addition,the lack of innovation in the main business is also one of the reasons for the transformation of cross industry operation.The resource effect of cross-ownership can supplement new financing channels for enterprises,and also can enhance the innovation vitality of enterprises through complementary technological innovation.Another important motivation of diversification is the agency problem.The enterprise management has agency motivation to meet the private desire of "empire construction" through diversified expansion.In addition to the management,major shareholders also have the motivation to "empty out" the interests of minority shareholders by expanding their operations.The empirical analysis shows that crossownership mainly affect the diversification of enterprises by giving play to the resource effect(alleviating financing constraints and improving the innovation level of main business),improving the level of corporate governance(restraining two types of agency problems)and improving the transparency of enterprise information(restraining the synchronization of stock prices).According to the formation mechanism of highlevel echelon theory and resource combination theory,the ability of shareholders’ supervision and governance and energy introduction must be affected by shareholders’ own cognitive style and value concept.The study on the heterogeneity of cross-ownership found that when the cross-ownership have financial background,the nature of private enterprises and the existence of appointed directors,they have a greater impact on the diversification of enterprises,and the refocusing effect is more significant.Thirdly,based on the characteristics of enterprises,it is found that when the precipitation redundancy resources are high and the non precipitation redundancy is low,the cross-ownership have a greater impact on the diversification of enterprises and the refocusing effect is more significant;The degree of asset specificity also has an impact on the refocusing behavior of cross-ownership.In enterprises with low degree of asset specificity,the inhibitory function of cross-ownership on diversification is more significant;cross-ownership have a greater impact on the diversification of enterprises under the condition of high management power,and the refocusing effect is more significant;Compared with state-owned enterprises,the refocusing effect of cross-ownership on enterprise diversification is more significant in private enterprises.Fourth,the study of institutional environment differences found that the impact of cross-ownership on diversification is affected by the external economic institutional environment.Specifically,compared with industries supported by industrial policies,the impact of cross-ownership on enterprise diversification is more significant in non supported industries,and more significant in regions with high marketization process than in regions with low marketization process.At the same time,in the environment of low uncertainty of external economic policies,cross-ownership can achieve collaborative governance with economic policies to curb diversified expansion.Fifth,over the years,the research on the economic consequences of diversification has not reached a unanimous conclusion.In view of the resource effect,governance effect and information effect of crossownership,it can effectively inhibit the degree of diversification of enterprises and promote the transformation of enterprises to specialization.So what are the specific aspects of the "refocusing effect" of cross-ownership? Does cross-ownership affect the total factor productivity of enterprises through resource redistribution,and what impact does it have on the business value? The research on the consequences of cross-ownership in diversification found that cross-ownership can effectively promote asset divestiture,inhibit non related diversification,promote related diversification,and finally bring the improvement of total factor productivity and diversification value.The research results of this thesis not only enrich the motivation theory of diversification,but also bring some enlightenment and reference to the diversification practice: China is currently in the key stage of economic transition."Focusing on characteristics and deeply cultivating the main business" is the internal demand for the high-quality development of enterprises.First of all,when introducing strategic investors,enterprises should not blindly pursue the diversification of investors’ resources,but should pay more attention to the industry background of investment enterprises,pay attention to the introduction of advantageous resources in the same industry to focus on the main industry,and maximize resource efficiency;Secondly,in novel coronavirus pneumonia,the new socio-economic challenges will be brought about by the new socioeconomic development of the crown.The strategy should focus on the main business direction,strip off the unrelated businesses,shrink the front line,reduce the weight and simplify the strategy,and achieve strategic focus in the market segments.In addition,we should clear the obstacles of system and mechanism,increase the "voice" of cross-ownership in state-owned enterprises,and make use of the information and resource advantages brought by shareholder connection to help state-owned enterprises " break the situation and transform";Finally,further optimize the enterprise market environment and improve the internal governance mechanism,give play to the supervision role of cross-ownership’ appointed directors,and focus on the advantages of the development of the main business,to ensure the steady development of the enterprise.