As of 2005，There are 127 very large “family” enterprise groups in my country，Control a total of 520 A-share listed companies，Its circulating market value accounts for approximately 50% of the total circulating market value of my country’s stock market，The total assets and operating income of the top 500 enterprise groups at the end of the year accounted for more than 95% and 66% of my country's GDP respectively。bet365 ohio promo code companies have played an increasingly important role in our country’s national economy。

Enterprise group operation is China、India、South Korea、A very typical feature of Japan and other Asian countries。But，In recent years, my country’s enterprise groups have frequently experienced financial crises as a whole，Such as "Three Nine Series"、"Delong Series"、“Family” enterprises such as “Hongyi Series” and “Greencool Series”, as well as Huayuan Group, etc.，Makes people pay attention to the financial risk issues of enterprise groups。What we found，A special bet365 ohio promo code my country’s enterprise groups will lead to their debt expansion，Increase corporate financial risks and even social financial risks。In view of the important position of enterprise groups in the Chinese economy，The financial risk has become a problem that cannot be ignored。

Easing bet365 ohio promo code is one of the motivations for the group operation of Chinese enterprises

When studying the financial risks of enterprise groups，The first question asked is，Why Chinese enterprises prefer group operations？A lot of research gives different answers。What we found，Easing bet365 ohio promo code is an important reason。

Popular explanation，bet365 ohio promo code mean that companies have to give up good investment opportunities due to lack of sufficient funds，Or the phenomenon that companies have to obtain funds at a higher cost to realize valuable investments。Underdeveloped capital market、When the legal environment is imperfect，The problem of bet365 ohio promo code is more prominent。Group operation improves corporate reputation、Scale has been improved，Guaranteed、Expansion of mortgage assets。These have improved the qualifications for corporate debt financing，Enables easy access to large-scale debt funds，Thus easing bet365 ohio promo code，Therefore，We think，Easing bet365 ohio promo code is an important motivation for enterprise group operations。For this，We examine whether corporate group operations can help alleviate bet365 ohio promo code，To indirectly prove this hypothesis。

We selected 1178 listed companies in my country、10 fiscal years (1997-2006), a total of 8486 company-year observation samples，Divide the observation samples into two categories: group enterprises and non-group enterprises，Then use the investment-cash flow sensitivity coefficient proposed by Fazzari et al. (1988) to measure bet365 ohio promo code，Discovered after regression testing，The bet365 ohio promo code of group companies are significantly lower than those of non-group companies (the sensitivity of investment cash flow is significantly low)。Also，Use dynamic analysis method，Examine the changes in bet365 ohio promo code before and after enterprise groupization，Also discovered that after implementing group expansion，The bet365 ohio promo code of enterprises are significantly reduced。This shows that groupization can help ease bet365 ohio promo code。Conglomeration may be a spontaneous choice of organizational structure by Chinese enterprises when facing external bet365 ohio promo code。

The bet365 ohio promo code operation of my country's enterprises has the potential to rapidly amplify debt、Features that increase financial risk

Discovered in case study of Fosun Industrial Group and other related research，The adoption of investment holding financing model is a common phenomenon in the group operations of Chinese enterprises, especially those with bet365 ohio promo code。In this financing model，Enterprises can obtain large amounts of debt funds through the model of investment holding (acquisitions and mergers)-mortgage loans-investment holding，At the same time, a pyramid enterprise group was formed。Judging from the final result，There is a dual expansion of corporate size and debt。This is manifested in the complex relationship、Multi-level enterprise group organizational structure and tortuous financing chain and debt expansion。

Except for case analysis，We perform statistical analysis on the same samples，Discovered relative to before grouping，Both the asset-liability ratio and the own capital ratio that reflect long-term solvency，It is also the monetary capital ratio and financial leverage coefficient that reflect short-term solvency，After the bet365 ohio promo code operation, all of them are above 1% and tend to be bad。And the asset-liability ratio quickly exceeded 50%，Significantly higher than the previous level of less than 40%。The financial leverage coefficient has nearly doubled compared to before the groupization。With the decline in solvency，After bet365 ohio promo code operation，Profitability also declined，The company’s earnings per share is only equivalent to about 65% of what it was before the conglomeration，The decline is quite significant。

After examining the two financial risk measures of return ROE volatility and Altman Z-Score points，It is found that the ROE volatility of bet365 ohio promo code companies is significantly higher than that of non-bet365 ohio promo code companies，Altman Z-Score is significantly lower than non-bet365 ohio promo code companies，Confirmed that bet365 ohio promo code operations significantly increase corporate financial risks and the probability of financial distress。On this basis，Our annual dynamic investigation based on the growth process of enterprise groupization，It is also confirmed that bet365 ohio promo code operations increase corporate financial risks。We found out，In the first year after groupization，Although due to the short time of bet365 ohio promo code operation，The impact of bet365 ohio promo code operations on enterprise operations has not yet been fully revealed，Or the volatility of earnings has not changed significantly due to earnings control and other reasons，But the Z-score has dropped significantly，The average level quickly dropped from the good financial condition range before the conglomeration to the "gray area" of financial condition pointed out by Altman research。And two years after the groupization，Not only the volatility of ROE began to gradually increase significantly，And the Z value also dropped significantly，This further proves that bet365 ohio promo code operations increase corporate financial risks and the possibility of financial distress，With the growth of bet365 ohio promo code operation time，This trend of change will be further strengthened。

The bet365 ohio promo code enterprise group operations is an important factor affecting the increase in financial risks

Why the financial risks of Chinese enterprises will increase after group operations？To this question，We examine the financing behavior characteristics of enterprise groups。We found out，Enterprises with bet365 ohio promo code during and after group operations，Tend to adopt the financing model of investment holding (acquisition)-mortgage borrowing-reacquisition-refinancing。This approach can help companies effectively overcome bet365 ohio promo code，At the same time, he quickly established a huge corporate empire——Enterprise Group。But the problem it brings is，Debt ratio increases rapidly，Financial risk amplification。

In accordance with the requirements of China’s credit system，Most companies’ bank borrowings require assets as collateral。The number of mortgage assets constitutes the final constraint on the scale of corporate borrowing。Therefore，For enterprises facing bet365 ohio promo code，Acquiring more mortgageable assets becomes an important part of overcoming bet365 ohio promo code。

How to obtain more mortgageable assets？Chinese enterprise，In particular, private enterprises generally adopt such a model: acquisition-mortgage loan-re-acquisition-re-mortgage loan...Theoretically speaking，This cycle can continue indefinitely，Until external limits are encountered。Along with this bet365 ohio promo code model is，A rapidly formed and rapidly expanding enterprise group，Rudelong series、Composite galaxies, etc.。

We define this bet365 ohio promo code acquisition-mortgage loan-reacquisition-remortgage loan as the bet365 ohio promo code investment holding。(See attached picture)

The equity structure of enterprise groups created by the investment holding bet365 ohio promo code model has pyramid characteristics: the ultimate controlling shareholder at the top can use relatively little capital，Control assets N times the initial investment。The role of bet365 ohio promo code here is，Shorter time to form a group，Created a larger group。The ultimate controlling shareholder of the group formed according to this bet365 ohio promo code model，Essentially maximize the role of financial leverage - quickly introduce large amounts of capital with a small amount。These funds mainly come from bank loans，Thus forming a large amount of liabilities、High financial leverage、High financial risk。

　　The pyramid holding structure will further increase the financial risks of the enterprise bet365 ohio promo code

Discovered by La Porta et al. (1999)，The main agency problem existing in large bet365 ohio promo code is no longer the conflict of interest between managers and shareholders in the traditional sense，It is a matter of controlling shareholders encroaching on the interests of small and medium-sized shareholders，And proposes corporate governance issues caused by the separation of control rights and ownership under the pyramid ownership structure and its unique ownership structure。The higher the degree of separation between the two powers，The higher the ultimate shareholder’s desire to seize control rights。

On the one hand, the financing model of investment holding helps enterprises ease bet365 ohio promo code，On the other hand, it creates the pyramid-like holding structure of enterprise groups。According to the theory of separation of control and ownership，The more levels the pyramid has，The ultimate controlling shareholder can obtain more benefits，Various possible financing tools will be used to help achieve the expansion of the pyramid empire。As analyzed above，Under my country’s bank lending system，The most convenient、The most effective financing tool is to obtain a mortgage。The result is the expansion of debt and increased financial risks of the corporate group。

Due to the specific bet365 ohio promo code enterprise groups, they are characterized by rapid expansion of debt and increased financial risks，Moreover, because enterprise groups have gathered a large amount of social funds，The increase in financial risks not only affects the group’s own security，And affects the financial security and economic stability of the whole society，Therefore，Financing models and financial risk issues for enterprise groups，Need to pay great attention，And strengthen the identification and control of financial risks of enterprise groups in practice。

(Author’s affiliation: Business School of Renmin University of bet365 ohio promo code；Fujian Industrial Bank；Bank of bet365 ohio promo code)