The Determinants And The Economic Effects Of Persons Acting In Concert Of The Listed Private Enterprises

In recent years,there have been frequent disputes over the ownership of shares in the company,in which the controlling interest of Baoneng group and Vanke has a great influence.In the process of competition for shares,Baoneng group has become the largest shareholder of Vanke.While Ampang insurance announced concerted action with Vanke,the control was recaptured,and regained in the hands of China Resources Group.Today,the battle between Baoneng group and Vanke battle has ended.The company's largest shareholder by China Resources Group eventually became Shenzhen Metro Group.Wang Shi outgoing Vanke director,no longer served as chairman of the board of directors of the company.This case brings some enlightenment in the paper.Persons acting in concert can change the structure of the existing shareholders directly,resulting in changes in the actual control,which would bring the changes of the company management.It affects the corporate governance structure.Corporate governance has always been the focus of scholars at home and abroad,and good corporate governance structure is the basic guarantee for corporate profits.Ownership structure is the basis of corporate governance,therefore most of the existing research literatures focus on ownership structure and corporate performance.In the past,scholars demonstrated the relationship between ownership structure and performance with the concentration of shares,the balance of ownership and the ownership of shares as the breakthrough point." Persons acting in concert ",such a special group of shareholders,is often ignored by most scholars.How does it appear? What is the impact of concerted action on corporate governance? Can the emergence of them bring performance growth to the enterprise? At present,there is no literature research on the determinants of concerted action,or the impact of persons acting in concert on corporate governance structure,and there is no clear conclusion about the effect of persons acting in concert on corporate performance.Based on this background,this paper studies the decisive factors of the persons acting in concert in private listed companies from the perspective of corporate governance structure,and explores the economic impact of concerted action.First of all,this paper makes a systematic exposition of the relevant research literature of corporate governance structure,then leads to the theme of this study.Secondly,the paper combines the theories of stock ownership structure and the present research situation,exploring the formation of concerted action from the degree of ownership concentration and the balance of ownership.The paper also explores from four aspects,the management side,the size of the board of directors,the independence of the board of directors and executive compensation to study the impact of concerted action on corporate governance structure.Furthermore,the changes of shareholder's concerted action may bring about the changes of the company's performance,and the corresponding theoretical hypothesis is put forward.Finally,this paper takes the private enterprises listed in A stock market in China between 2003-2015 as the research sample,establishes the corresponding regression model,and carries on the empirical analysis and the confirmation to the theory hypothesis.The empirical results show that:(1)there is a close relationship between the formation of concerted action and ownership structure;the concentration of ownership is negatively related to the concerted action,and the balance of ownership is positively related to the concerted action.(2)the impact of the emergence of concerted action on corporate governance structure is multidimensional.The concerted action of the management of the company as the effect is not significant;the concerted action with the board of directors is positively correlated with the scale;there is a positive correlation between executive compensation and concerted action;The concerted action on the independence of the board of directors is not significantly affected.(3)the effect of concerted action on the return on equity is not obvious.The innovation of this paper lies in: First,this paper focuses on the determinants of the formation of concerted action,while the concerted action is a special equity arrangement among shareholders,which broadens the thinking of optimizing shareholder structure.Second,this paper explores the relationship between concerted action and corporate governance from many aspects,which provides a specific direction for the optimization of corporate governance structure;Third,exploring the impact of concerted action on corporate performance can provide a reference for corporate shareholders to act in concert.