Related Party Cooperation, Ownership Structure and Value Creation

Zhi-hong Song; Xiao-fei Che; Yan-xin Guo

doi:doi:10.11648/j.ajtab.20160202.11

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Related Party Cooperation, Ownership Structure and Value Creation

Zhi-hong Song, Xiao-fei Che, Yan-xin Guo

Published in American Journal of Theoretical and Applied Business (Volume 2, Issue 2)

Received: 17 September 2016 Accepted: 17 October 2016 Published: 28 October 2016

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Abstract

Taking the 141 related party cooperation announcements by Chinese listed companies from January 2001 to December 2013 as the sample, the article investigates the impact of the focal firms’ ownership structure and relative characteristics of related parties on the focal firms’ value creation. The empirical results indicate that ownership concentration negatively affect the value creation, while equity restriction has no influence on the focal firms’ value creation. The related party’s relative scale plays a significantly positive role on the focal firms’ value creation, while the related party’s relative associated relationship is negatively related to the focal firms’ value creation. The article contributes to the current literature by investigating whether the governance mechanism of listed companies could create value for the focal firms under the background of related party cooperation, and providing empirical evidence about the influence of ownership structure and relative characteristics of related party on the focal firms’ value creation.

Published in	American Journal of Theoretical and Applied Business (Volume 2, Issue 2)
DOI	10.11648/j.ajtab.20160202.11
Page(s)	8-12
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Related Party Cooperation, Ownership Concentration, Equity Restriction, Value Creation

References

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[3]	Demsetz, H., Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7(3): 209-233.
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[5]	Liu, F. and Ho, J. (2004). Ownership structure and substantial shareholders’ choice in interest realizing methods: Tentative study on tunneling in Chinese capital market. China Accounting Review, 2(1): 141-158.(In Chinese).
[6]	Xu, L., Xin, Y. and Chen, G. (2006). Ownership concentration, outside blockholders, and operating performance: Evidence from China’s listed companies. Economic Research Journal,41(1): 90-100. (In Chinese).
[7]	Liu, Y.and Gao, Y. (2007). The relationship between ownership restriction and corporate performance of listed companies in China. Journal of Sun Yatsen University (Social Science Edition), 47(4):102-108. (In Chinese).
[8]	McConnell, J. and Servaes, H. (1990). Additional evidence on equity ownership and corporate value. Journal of Financial Economics, 27(2): 596 - 612.
[9]	Leech, D. and Leahy, J. (1991). Ownership structure, control type classifications and the performance of large British companies. The Economic Journal, 101(409):1418-1437.
[10]	Mudambi, R., and Nicosia, C. (1998).Ownership structure and firm performance: Evidence from the UK financial services industry. Applied Financial Economics, 8:175-180.
[11]	Crutchley, C., Guo, E. and Hansen, R. (1991). Stockholder benefits from Japanese-U.S. joint ventures. Financial Management, 20(4): 22-30.
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[14]	Rao, Y., Zhang, Y. and Peng, D. (2008).Holding proportion, over guarantee and tunneling: evidence from the guarantee of Chinese listed companies to their subsidiaries. Nankai Business Review, 11(1): 31-38. (In Chinese).

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APA Style

Zhi-hong Song, Xiao-fei Che, Yan-xin Guo. (2016). Related Party Cooperation, Ownership Structure and Value Creation. American Journal of Theoretical and Applied Business, 2(2), 8-12. https://doi.org/10.11648/j.ajtab.20160202.11

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ACS Style

Zhi-hong Song; Xiao-fei Che; Yan-xin Guo. Related Party Cooperation, Ownership Structure and Value Creation. Am. J. Theor. Appl. Bus. 2016, 2(2), 8-12. doi: 10.11648/j.ajtab.20160202.11

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AMA Style

Zhi-hong Song, Xiao-fei Che, Yan-xin Guo. Related Party Cooperation, Ownership Structure and Value Creation. Am J Theor Appl Bus. 2016;2(2):8-12. doi: 10.11648/j.ajtab.20160202.11

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@article{10.11648/j.ajtab.20160202.11,
  author = {Zhi-hong Song and Xiao-fei Che and Yan-xin Guo},
  title = {Related Party Cooperation, Ownership Structure and Value Creation},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {2},
  number = {2},
  pages = {8-12},
  doi = {10.11648/j.ajtab.20160202.11},
  url = {https://doi.org/10.11648/j.ajtab.20160202.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20160202.11},
  abstract = {Taking the 141 related party cooperation announcements by Chinese listed companies from January 2001 to December 2013 as the sample, the article investigates the impact of the focal firms’ ownership structure and relative characteristics of related parties on the focal firms’ value creation. The empirical results indicate that ownership concentration negatively affect the value creation, while equity restriction has no influence on the focal firms’ value creation. The related party’s relative scale plays a significantly positive role on the focal firms’ value creation, while the related party’s relative associated relationship is negatively related to the focal firms’ value creation. The article contributes to the current literature by investigating whether the governance mechanism of listed companies could create value for the focal firms under the background of related party cooperation, and providing empirical evidence about the influence of ownership structure and relative characteristics of related party on the focal firms’ value creation.},
 year = {2016}
}

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TY  - JOUR
T1  - Related Party Cooperation, Ownership Structure and Value Creation
AU  - Zhi-hong Song
AU  - Xiao-fei Che
AU  - Yan-xin Guo
Y1  - 2016/10/28
PY  - 2016
N1  - https://doi.org/10.11648/j.ajtab.20160202.11
DO  - 10.11648/j.ajtab.20160202.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 8
EP  - 12
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20160202.11
AB  - Taking the 141 related party cooperation announcements by Chinese listed companies from January 2001 to December 2013 as the sample, the article investigates the impact of the focal firms’ ownership structure and relative characteristics of related parties on the focal firms’ value creation. The empirical results indicate that ownership concentration negatively affect the value creation, while equity restriction has no influence on the focal firms’ value creation. The related party’s relative scale plays a significantly positive role on the focal firms’ value creation, while the related party’s relative associated relationship is negatively related to the focal firms’ value creation. The article contributes to the current literature by investigating whether the governance mechanism of listed companies could create value for the focal firms under the background of related party cooperation, and providing empirical evidence about the influence of ownership structure and relative characteristics of related party on the focal firms’ value creation.
VL  - 2
IS  - 2
ER  -

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Author Information

Zhi-hong Song

Institute of Management and Decision, Shanxi University, Taiyuan, China
Xiao-fei Che

School of Economics and Management, Shanxi University, Taiyuan, China
Yan-xin Guo

School of Mathematical Sciences, Shanxi University, Taiyuan, China

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Plain Text BibTeX RIS

APA Style

Zhi-hong Song, Xiao-fei Che, Yan-xin Guo. (2016). Related Party Cooperation, Ownership Structure and Value Creation. American Journal of Theoretical and Applied Business, 2(2), 8-12. https://doi.org/10.11648/j.ajtab.20160202.11

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ACS Style

Zhi-hong Song; Xiao-fei Che; Yan-xin Guo. Related Party Cooperation, Ownership Structure and Value Creation. Am. J. Theor. Appl. Bus. 2016, 2(2), 8-12. doi: 10.11648/j.ajtab.20160202.11

Copy | Download

AMA Style

Zhi-hong Song, Xiao-fei Che, Yan-xin Guo. Related Party Cooperation, Ownership Structure and Value Creation. Am J Theor Appl Bus. 2016;2(2):8-12. doi: 10.11648/j.ajtab.20160202.11

Copy | Download

@article{10.11648/j.ajtab.20160202.11,
  author = {Zhi-hong Song and Xiao-fei Che and Yan-xin Guo},
  title = {Related Party Cooperation, Ownership Structure and Value Creation},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {2},
  number = {2},
  pages = {8-12},
  doi = {10.11648/j.ajtab.20160202.11},
  url = {https://doi.org/10.11648/j.ajtab.20160202.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20160202.11},
  abstract = {Taking the 141 related party cooperation announcements by Chinese listed companies from January 2001 to December 2013 as the sample, the article investigates the impact of the focal firms’ ownership structure and relative characteristics of related parties on the focal firms’ value creation. The empirical results indicate that ownership concentration negatively affect the value creation, while equity restriction has no influence on the focal firms’ value creation. The related party’s relative scale plays a significantly positive role on the focal firms’ value creation, while the related party’s relative associated relationship is negatively related to the focal firms’ value creation. The article contributes to the current literature by investigating whether the governance mechanism of listed companies could create value for the focal firms under the background of related party cooperation, and providing empirical evidence about the influence of ownership structure and relative characteristics of related party on the focal firms’ value creation.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Related Party Cooperation, Ownership Structure and Value Creation
AU  - Zhi-hong Song
AU  - Xiao-fei Che
AU  - Yan-xin Guo
Y1  - 2016/10/28
PY  - 2016
N1  - https://doi.org/10.11648/j.ajtab.20160202.11
DO  - 10.11648/j.ajtab.20160202.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 8
EP  - 12
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20160202.11
AB  - Taking the 141 related party cooperation announcements by Chinese listed companies from January 2001 to December 2013 as the sample, the article investigates the impact of the focal firms’ ownership structure and relative characteristics of related parties on the focal firms’ value creation. The empirical results indicate that ownership concentration negatively affect the value creation, while equity restriction has no influence on the focal firms’ value creation. The related party’s relative scale plays a significantly positive role on the focal firms’ value creation, while the related party’s relative associated relationship is negatively related to the focal firms’ value creation. The article contributes to the current literature by investigating whether the governance mechanism of listed companies could create value for the focal firms under the background of related party cooperation, and providing empirical evidence about the influence of ownership structure and relative characteristics of related party on the focal firms’ value creation.
VL  - 2
IS  - 2
ER  -

Copy | Download