Research On The Capital Operation Of Pyramid Holding Group

Today,the international situation is complex,and in the context of China’s macrocycle,the stable and healthy growth of corporate groups is an important guarantee of high-quality macroeconomic development.The capital operation of groups of companies in the capital market is an effective way of promoting resource allocation efficiency and is also an important link in helping the market to strengthen its decisive position in the optimal allocation of resources."The ownership structure of the pyramid is widespread in the capital market and whether it affects the way the capital of groups of companies operates is directly related to the stability of the Chinese financial market and the realization of the national economy plan to turn the transition into a virtual reality that deserves in-depth research."This article first analyses the theoretical impact of pyramid control structure on the company’s capital operation and then tests empirically the impact of pyramid control structure on the company’s capital operation using sample data of pyramid holding companies of A-share in 2007-2020.Accordingly,in this article,Baoneng Group is selected as the subject of a case study to investigate the impact of the ownership structure of the Baoneng Group pyramid on its capital operation and the characteristics of its capital operation and to present appropriate countermeasures and proposals based on the high-quality development of China.The main conclusions of this article are as follows:(1)Regression results show that the pyramid ownership structure of groups of companies significantly promotes the functioning of the capital of groups of companies.The conclusion also applies after thorough testing of methods such as delaying explanatory variables for some time and increasing the level of tail contraction to reduce the impact of extreme values.(2)The analysis of heterogeneity shows that the driving effect of the ownership structure of the pyramid on the functioning of the company’s capital is more evident in groups of companies with low internal governance and private ownership;Excessive corporate financing has a knock-out effect on the development of the real economy,deepening the trend of the real economy to "realize and become virtual".(3)Baoneng Group is a typical pyramid holding structure,and its capital operation mainly relies on insurance funds,equity pledges,bank loans,and asset management plans.It mainly relies on diversified financing platforms and multiple leverage methods for capital operation.In the context of China’s current demand for high-quality development of the real economy,it will significantly affect the healthy development of the real economy,Intensify the trend of the real economy shifting from reality to emptiness.Based on the conclusions of this study,the following policy recommendations are made: Firstly,from a regulatory point of view,targeted regulatory measures should be taken to control the capital behaviour of large groups of companies through the pyramid holding structure.For example,measures should be taken to improve the level of internal corporate governance,optimise internal environmental controls and formulate appropriate regulatory rules to control unhealthy capital behaviour of groups of companies at root causes;Secondly,groups of companies should improve themselves,actively improve their risk-bearing and corporate governance capacity and increase their physical competitiveness.In addition,they should properly play the role of financing as a ’lifeline’ when conducting capital operations and promote business development through capital financing,without interfering with their corporate governance.Only in this way can they simultaneously improve their strategic structure and achieve development that is beneficial.