Research On Parent-subsidiary Management Decentralization And Enterprise Value From The Perspective Of Enterprise Life Cycle

Enterprise group is a kind of organizational pattern that developed with the market economy and socialized mass production,and has gradually become the pillar of the national economy.With the continuous expansion of the group's scale and business volume,the parent-subsidiary organizational model has become an important organizational pattern for enterprise groups.Parent-subsidiary relationship is essentially a kind of principal-agent relationship,Inappropriate power distribution mode will make the management of parent and subsidiary companies tend to pursue the maximization of their own value when making investment decisioins in order to compete for more resources and interests,which is likely to promote the generation of inefficient investment,thus affecting the overall value of the enterprise.Based on the comprehensive analysis of the parent-subsidiary corporate governance structure of enterprise groups,this paper studies the economic consequences of the improper power distribution model of parent-subsidiary companies and whether the economic consequences change with the change of enterprise life cycle.This paper combines literature induction method and the empirical method,based with principal-agent theory,asymmetric information theory and the enterprise life cycle theory.After summarizing and sorting out the literature on management decentralization,investment efficiency,enterprise value and enterprise life cycle,the research hypothesis is put forward.And according to the characteristic of the parent-subsidiary control mode,this paper makes statistics on the financial data of all A-share listed companies and their subsidiaries in China from 2007 to 2018.The empirical study of this paper draws the following conclusions.First,the improper decentralization of management will lead to inefficient investment,and the higher the degree of improper investment,the worse the investment efficiency.Secondly,the improper decentralization of management will increase the total cost of decision making and will further have a negative impact on the overall value of the enterprise.Thirdly,the improper decentralization of management will further negatively affect enterprise value by leading to inefficient investment in enterprises.Fourth,there are significant differences in the negative effects of improper decentralization of management on the operating results of enterprises in different stages of the enterprise life cycle.Subdivision sample regression results show that the improper decentralization of enterprise management only has a direct negative impact on the investment efficiency and enterprise value in the growth period or the improper decentralization of management has a further negative impact on enterprise value by affecting the investment efficiency of enterprises,but has no significant impact on maturity and decline period,which also shows that enterprises should make adaptive adjustment to organizational structure and management style in the growth period.