Research On The Risk-Taking Behavior Of Listed Member Companies Of Business Groups

After the reform and opening up,China's private enterprises develop gradually under the support of various policies,some enterprises expand rapidly in the capital market by means of backdoor listing or IPO listing,forming a situation in which they have the controlling right of a number of listed companies at the same time,this is the result of large business groups.As a special form of enterprise organization,the business groups play important roles in modern economic activities,not only to create rich material wealth,but also to solve the employment problem of tens of thousands of people,therefore,the study of the business groups is undoubtedly of great significance to understand the development of China's economy and the progress of society.However,in recent years,business groups on the capital market are put in a tight spot frequently,Hai Hang business group and Dun An business group falling into the financial difficulties and other vicious events not only aroused the strong response of the market,but also caused more scholars to pay attention to the business groups.At present,the literature on the business group mainly focuses on the internal capital market and shareholder behavior,there are many methods of case study,the literature of large sample empirical research is relatively few,and so far there is no literature based on large sample data to explore the risk-taking of listed member companies.Based on this,first of all,this paper collects the literature on the business group and enterprise risk-taking at home and abroad,summarizes the viewpoints of different scholars.Secondly,according to the principal-agent theory,internal capital market theory,social emotional wealth theory,the paper compares the differences between the business group and non-business group in agency issues,internal capital markets and business objectives orientation,through these three aspects,this paper combs out the various functions of control model of business group and risk undertaking of the listed member enterprises,and then forms the research hypothesis.Thirdly,the paper takes the private listed companies as samples,the time span 2003 to 2016,and then the paper use relevant quantitative analysis method to do empirical analysis about control model of business group and risk undertaking of the listed member enterprises.Finally,based on the conclusions of the study,the paper puts forward constructive opinions on the management of the business group.The research results of paper show that:(1)Under different control models of business groups and non-business groups,there are obvious different in risk takingamong listed member companies,and the risk-taking level of listed member companies of business groups is significantly higher than that of non-business group;(2)Direct listing has negative adjustment effect on the relationship between the control model of business group and the risk taking of listed member companies.The mean is that the control model of business groups has a weaker impact on the risk-taking capacity of listed member companies when the company directly listed;(3)The group of listed member companies without shareholding financial institutions has a stronger level of risk commitment.The results of robustness analysis show that the above conclusion(1)(3)is robust,in contrast,conclusion(2)is more sensitive to the choice of interpreted variables.The innovative points of this paper are mainly embodied in the following aspects.Firstly,as a special form of enterprise organization,the business groups have not attracted extensive attention,this paper separates the business groups from the research of traditional enterprise groups,and introduces them in detail,at the same time,combining the principal-agent theory,the theory of internal capital market and the theory of social emotion wealth,this paper analyzes the differences between business group and non-business group in agency problem,internal capital market and the business goal orientation,which initially establishes the analysis framework and theoretical system of the business group,and also makes an important supplement to the research framework of the traditional enterprise groups.Secondly,at present,domestic research mainly focuses on the internal capital market and shareholder behavior,but the research on the risk taking of the business group is seldom,and most of the studies of the business group are presented by the case,but the empirical test is seldom,then,the paper firstly study the relationship between control model of the business group and the risk taking of listed member companies,and compare the difference of risk taking between business groups and non-business groups,which enrich the existing research on economic behavior of enterprise groups.Thirdly,the paper divides the business groups according to whether they have shareholding financial institutions,and analyzes the differences in the risk-taking ability of the listed member companies under different characteristics,which is also a further supplement to the research of the business groups.