| China's capital market is in the process of development,but still cannot meet the demand of enterprise strong expansion incentives and financing,to alleviate the financing constraints through a pyramid shareholding structure design of holding a series of listed companies,thus the birth of a large number of "family" enterprise,such as Tsinghua,Renaissance,Deron Williams,relieve internal capital market financing constraints under the background of collectivization and external financing ability has improved.Some group companies started large-scale cross-border mergers and acquisitions,and the scale of China's overseas mergers and acquisitions increased year by year until 2017,when the Chinese government strengthened the review of outbound investment.In that year,the net outbound direct investment decreased 19.3%year on year,which was the first negative growth since 2003.As a result,a number of groups have been forced to suspend overseas investment projects,including HNA Group.HNA Group is a company with the air transportation industry as the main body.According to the earliest public data,the total assets of HNA group in 2008 were only 31.8 billion yuan.However,thanks to the leveraged buyout,HNA Group has developed into a group company with total assets of over one trillion yuan covering seven business sectors including air transportation and hotel tourism through dozens of mergers and acquisitions at home and abroad in the past decades.However,after the termination of overseas mergers and acquisitions in 2017,the liquidity crisis of HNA group initially appeared.On July 29,2018,HNA had no choice but to deal with "16 HNA 02",a private bond with only 1.5 billion RMB principal issued in 2016,and chose to default in the private bond market,so far it has not realized payment.Enterprise by leveraged buy-out can quickly grow into group,collectivize operation of internal capital markets can reduce corporate financing constraints,to reduce financial risk,inherent risk,but a leveraged buy-out expansion leveraged buyouts and group into a dual influence enterprise financial liquidity,so this article to HNA Group as the object of case study to explore the research under the background of collectivization operation for leveraged buy-outs of group mechanism and transmission mechanism of financial liquidity.The case study of this paper draws the following conclusions:(1)there are inherent defects in the expansion mode of continuous LBO,the speed of cash return lags behind the expansion speed of debt scale,LBO becomes a disguised financing method of the group,M&A shows the characteristics of emphasizing scale over integration and globalization,and financing tends to be high interest rate and short term.(2)most of the funds in LBO come from the external capital market of the group,and the local liquidity risks caused by such capital problems will spread to the whole group through the internal capital market.The reflection of the secondary bond market and the excessive use of the financing capacity of the internal capital market will accelerate the spread of risks.(3)under the pyramidal shareholding structure formed by the acquisition,the listed company may become the largest victim,and the controlling shareholder in the internal capital market at the group level is likely to seize the interests of the listed company,which is mainly manifested in the related transaction capital occupation;In the internal capital market at the parent-subsidiary level,due to the consideration of management efficiency,subsidiaries will be given independent decision-making rights,especially in cross-border mergers and acquisitions,capital flow will be subject to stronger supervision,so listed companies have limited control over the capital of subsidiaries.The research value of this paper lies in providing a new thinking angle for financial fluidity related research,and establishing the connection between continuous LBO expansion mode,group operation and financial liquidity through case study. |
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