Research on Cross-Shareholding Behavior of Chinese Listed Companies

Ruiqi Sun; Yuan Ding; Chen Wen; Ke Gao

doi:doi:10.11648/j.jim.20221101.14

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Research on Cross-Shareholding Behavior of Chinese Listed Companies

Ruiqi Sun, Yuan Ding, Chen Wen, Ke Gao

Published in Journal of Investment and Management (Volume 11, Issue 1)

Received: 18 April 2022 Accepted: Published: 20 April 2022

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Abstract

It is an increasingly view that there is a large number of cross-shareholding behaviors in listed companies in China. Cross-shareholding exists in a large number of listed companies, and the cross-shareholding behavior of various industries is different. This paper studies this problem. China's A-share listed companies can be divided into six categories: finance, real estate, comprehensive, industry, public utilities and commerce. This paper first describes the changes and characteristics of cross-shareholding in these different industries by using the network analysis method, and then studies the main factors of enterprises participating in cross-shareholding in these six industries by using the data from 2007 to 2016 according to the financial indicators that can represent the characteristics of listed companies, such as asset scale, debt degree, operation ability and development ability. By studying the characteristics of enterprises participating in and exiting cross-shareholding, the study found that after the global financial crisis in 2008, the number of enterprises participating in cross-shareholding in various industries increased to a certain extent, but in 2014, after the financial crisis was relatively alleviated, the number of enterprises participating in cross-shareholding decreased significantly. On the whole, enterprises with large assets and stable long-term operation and development are easier to participate in and realize cross-shareholding when short-term liabilities and operation difficulties occur. However, this cross-shareholding behavior is relatively unstable. Enterprises will participate in cross-shareholding only when they encounter some operating difficulties. The role of cross-shareholding in integrating enterprise resources and promoting the long-term development of enterprises has not been effectively played in China.

Published in	Journal of Investment and Management (Volume 11, Issue 1)
DOI	10.11648/j.jim.20221101.14
Page(s)	25-32
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), 2024. Published by Science Publishing Group

Keywords

Cross-Shareholding, Business Cooperation, Network, Corporate Governance

References

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[5]	Feng, Y., & Li, X. (2021). The cross-shareholding network and risk contagion from stochastic shocks: an investigation based on China's market. Computational economics, 59 (1), 57-381.
[6]	Guo, H., Sun, Y, & Qiu, X. (2021 shareholding network and corporate bond financing cost in China. The North American jurnal of eonomics and fnance, 57, 01423.
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[8]	Li, H., Ren, H., An, H, Ma, N., & Yan, L. (2021) Multiplex cross-shareholding relations in the global oil & gas industry chain based on multilayer network modeling. Energy economics, 95, 105130.
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[10]	Muramiya, K., & Takada, T. (2020). How cross-shareholding influences financial reporting: evidence from Japan. Corporate governance: an international review, 28 (5), 309-326.
[11]	Rao, Y., Peng, D., & Jia W. (2013). Dose cross-shareholding cause return predictability?-based on limited attention perspective. Systems engineering-theory & practice, (7), 1753-1761.
[12]	Sha, H., & Zeng, Y. (2014). An empirical study on the cross-shareholding, network location and firm performance. Journal of management science, (1), 131-142.
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APA Style

Ruiqi Sun, Yuan Ding, Chen Wen, Ke Gao. (2022). Research on Cross-Shareholding Behavior of Chinese Listed Companies. Journal of Investment and Management, 11(1), 25-32. https://doi.org/10.11648/j.jim.20221101.14

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ACS Style

Ruiqi Sun; Yuan Ding; Chen Wen; Ke Gao. Research on Cross-Shareholding Behavior of Chinese Listed Companies. J. Invest. Manag. 2022, 11(1), 25-32. doi: 10.11648/j.jim.20221101.14

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AMA Style

Ruiqi Sun, Yuan Ding, Chen Wen, Ke Gao. Research on Cross-Shareholding Behavior of Chinese Listed Companies. J Invest Manag. 2022;11(1):25-32. doi: 10.11648/j.jim.20221101.14

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@article{10.11648/j.jim.20221101.14,
  author = {Ruiqi Sun and Yuan Ding and Chen Wen and Ke Gao},
  title = {Research on Cross-Shareholding Behavior of Chinese Listed Companies},
  journal = {Journal of Investment and Management},
  volume = {11},
  number = {1},
  pages = {25-32},
  doi = {10.11648/j.jim.20221101.14},
  url = {https://doi.org/10.11648/j.jim.20221101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20221101.14},
  abstract = {It is an increasingly view that there is a large number of cross-shareholding behaviors in listed companies in China. Cross-shareholding exists in a large number of listed companies, and the cross-shareholding behavior of various industries is different. This paper studies this problem. China's A-share listed companies can be divided into six categories: finance, real estate, comprehensive, industry, public utilities and commerce. This paper first describes the changes and characteristics of cross-shareholding in these different industries by using the network analysis method, and then studies the main factors of enterprises participating in cross-shareholding in these six industries by using the data from 2007 to 2016 according to the financial indicators that can represent the characteristics of listed companies, such as asset scale, debt degree, operation ability and development ability. By studying the characteristics of enterprises participating in and exiting cross-shareholding, the study found that after the global financial crisis in 2008, the number of enterprises participating in cross-shareholding in various industries increased to a certain extent, but in 2014, after the financial crisis was relatively alleviated, the number of enterprises participating in cross-shareholding decreased significantly. On the whole, enterprises with large assets and stable long-term operation and development are easier to participate in and realize cross-shareholding when short-term liabilities and operation difficulties occur. However, this cross-shareholding behavior is relatively unstable. Enterprises will participate in cross-shareholding only when they encounter some operating difficulties. The role of cross-shareholding in integrating enterprise resources and promoting the long-term development of enterprises has not been effectively played in China.},
 year = {2022}
}

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TY  - JOUR
T1  - Research on Cross-Shareholding Behavior of Chinese Listed Companies
AU  - Ruiqi Sun
AU  - Yuan Ding
AU  - Chen Wen
AU  - Ke Gao
Y1  - 2022/04/20
PY  - 2022
N1  - https://doi.org/10.11648/j.jim.20221101.14
DO  - 10.11648/j.jim.20221101.14
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 25
EP  - 32
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20221101.14
AB  - It is an increasingly view that there is a large number of cross-shareholding behaviors in listed companies in China. Cross-shareholding exists in a large number of listed companies, and the cross-shareholding behavior of various industries is different. This paper studies this problem. China's A-share listed companies can be divided into six categories: finance, real estate, comprehensive, industry, public utilities and commerce. This paper first describes the changes and characteristics of cross-shareholding in these different industries by using the network analysis method, and then studies the main factors of enterprises participating in cross-shareholding in these six industries by using the data from 2007 to 2016 according to the financial indicators that can represent the characteristics of listed companies, such as asset scale, debt degree, operation ability and development ability. By studying the characteristics of enterprises participating in and exiting cross-shareholding, the study found that after the global financial crisis in 2008, the number of enterprises participating in cross-shareholding in various industries increased to a certain extent, but in 2014, after the financial crisis was relatively alleviated, the number of enterprises participating in cross-shareholding decreased significantly. On the whole, enterprises with large assets and stable long-term operation and development are easier to participate in and realize cross-shareholding when short-term liabilities and operation difficulties occur. However, this cross-shareholding behavior is relatively unstable. Enterprises will participate in cross-shareholding only when they encounter some operating difficulties. The role of cross-shareholding in integrating enterprise resources and promoting the long-term development of enterprises has not been effectively played in China.
VL  - 11
IS  - 1
ER  -

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Author Information

Ruiqi Sun

The Center for Economic Research, Shandong University, Jinan, China
Yuan Ding

School of Management, Ocean University of China, Qingdao, China
Chen Wen

Olin Business School, Washington University in St. Louis, St. Louis, United States
Ke Gao

School of Economics, Peking University, Beijing, China; Jinan Rail Transit Group Co., Ltd, Jinan, China

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APA Style

Ruiqi Sun, Yuan Ding, Chen Wen, Ke Gao. (2022). Research on Cross-Shareholding Behavior of Chinese Listed Companies. Journal of Investment and Management, 11(1), 25-32. https://doi.org/10.11648/j.jim.20221101.14

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ACS Style

Ruiqi Sun; Yuan Ding; Chen Wen; Ke Gao. Research on Cross-Shareholding Behavior of Chinese Listed Companies. J. Invest. Manag. 2022, 11(1), 25-32. doi: 10.11648/j.jim.20221101.14

Copy | Download

AMA Style

Ruiqi Sun, Yuan Ding, Chen Wen, Ke Gao. Research on Cross-Shareholding Behavior of Chinese Listed Companies. J Invest Manag. 2022;11(1):25-32. doi: 10.11648/j.jim.20221101.14

Copy | Download

@article{10.11648/j.jim.20221101.14,
  author = {Ruiqi Sun and Yuan Ding and Chen Wen and Ke Gao},
  title = {Research on Cross-Shareholding Behavior of Chinese Listed Companies},
  journal = {Journal of Investment and Management},
  volume = {11},
  number = {1},
  pages = {25-32},
  doi = {10.11648/j.jim.20221101.14},
  url = {https://doi.org/10.11648/j.jim.20221101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20221101.14},
  abstract = {It is an increasingly view that there is a large number of cross-shareholding behaviors in listed companies in China. Cross-shareholding exists in a large number of listed companies, and the cross-shareholding behavior of various industries is different. This paper studies this problem. China's A-share listed companies can be divided into six categories: finance, real estate, comprehensive, industry, public utilities and commerce. This paper first describes the changes and characteristics of cross-shareholding in these different industries by using the network analysis method, and then studies the main factors of enterprises participating in cross-shareholding in these six industries by using the data from 2007 to 2016 according to the financial indicators that can represent the characteristics of listed companies, such as asset scale, debt degree, operation ability and development ability. By studying the characteristics of enterprises participating in and exiting cross-shareholding, the study found that after the global financial crisis in 2008, the number of enterprises participating in cross-shareholding in various industries increased to a certain extent, but in 2014, after the financial crisis was relatively alleviated, the number of enterprises participating in cross-shareholding decreased significantly. On the whole, enterprises with large assets and stable long-term operation and development are easier to participate in and realize cross-shareholding when short-term liabilities and operation difficulties occur. However, this cross-shareholding behavior is relatively unstable. Enterprises will participate in cross-shareholding only when they encounter some operating difficulties. The role of cross-shareholding in integrating enterprise resources and promoting the long-term development of enterprises has not been effectively played in China.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Research on Cross-Shareholding Behavior of Chinese Listed Companies
AU  - Ruiqi Sun
AU  - Yuan Ding
AU  - Chen Wen
AU  - Ke Gao
Y1  - 2022/04/20
PY  - 2022
N1  - https://doi.org/10.11648/j.jim.20221101.14
DO  - 10.11648/j.jim.20221101.14
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 25
EP  - 32
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20221101.14
AB  - It is an increasingly view that there is a large number of cross-shareholding behaviors in listed companies in China. Cross-shareholding exists in a large number of listed companies, and the cross-shareholding behavior of various industries is different. This paper studies this problem. China's A-share listed companies can be divided into six categories: finance, real estate, comprehensive, industry, public utilities and commerce. This paper first describes the changes and characteristics of cross-shareholding in these different industries by using the network analysis method, and then studies the main factors of enterprises participating in cross-shareholding in these six industries by using the data from 2007 to 2016 according to the financial indicators that can represent the characteristics of listed companies, such as asset scale, debt degree, operation ability and development ability. By studying the characteristics of enterprises participating in and exiting cross-shareholding, the study found that after the global financial crisis in 2008, the number of enterprises participating in cross-shareholding in various industries increased to a certain extent, but in 2014, after the financial crisis was relatively alleviated, the number of enterprises participating in cross-shareholding decreased significantly. On the whole, enterprises with large assets and stable long-term operation and development are easier to participate in and realize cross-shareholding when short-term liabilities and operation difficulties occur. However, this cross-shareholding behavior is relatively unstable. Enterprises will participate in cross-shareholding only when they encounter some operating difficulties. The role of cross-shareholding in integrating enterprise resources and promoting the long-term development of enterprises has not been effectively played in China.
VL  - 11
IS  - 1
ER  -

Copy | Download