Parent Subsidiary Company Research Articles

Parent-Subsidiary Responsibility in the Development of Multinational Enterprises

As a core subject in the current international market economic activities, the parent-subsidiary company not only plays an important role in the development of multinational enterprises themselves, but also plays an important role in the bonding of cooperation between countries. However, the limitations of the traditional corporate law governance model, especially the limited nature of liability, make multinational corporations in the actual operation of many problems. Among them, the issue of responsibility sharing between parent and subsidiary companies is still one of the core issues that need to be continuously focused on at this stage, because the assumption of responsibility by parent and subsidiary companies not only has an important impact on the development of the international market economy, but also pays direct attention to the acquisition of creditor's interests. Through comparative research, historical research, and other research methods, the issue of responsibility-sharing among parent-subsidiary companies of multinational enterprises will be studied. The role of the corporate veil piercing system in responsibility-sharing will be analyzed based on domestic and foreign legislation and judicial experience. The aim is to identify a responsibility-sharing approach that promotes the development of multinational enterprises while safeguarding the interests of creditors.

Regulation of Group of Companies in Ethiopia: A Comparative Overview

Companies that are organized in a group aim at leveraging the market share, mitigate liability or facilitate long-term management efficiency. The reasons that make group establishment attractive for the parent company can be a basis for concern to other stakeholders, mainly, minority shareholders and creditors of the subsidiary company. The strict application of separate existence of a company and directors’ fiduciary duties towards their companies –applicable in cases of single entity companies– may be difficult in the case of group companies. States, therefore, devise regulatory mechanisms to protect the subsidiary company and its minority shareholders and creditors while at the same time protecting corporate freedom and entrepreneurial reality. Ethiopia has introduced regulatory rules regarding group company (Parent-Subsidiary Company). The objective of this article is to discuss the nature and regulation of Group Company as specified under the new commercial code and in comparison, with other countries’ laws. The article argues that the rules stipulated are not designed to adequately protect the interests of the subsidiary and its stakeholders. It also argues that the liberal interpretation of the provisions governing group companies to include the application of rules governing single company can contribute to potential protection rules missing under the sections in the group company.

Are scholar-type CEOs more conducive to promoting industrial AI transformation of manufacturing companies?

PurposeIn order to effectively promote the deep integration of artificial intelligence and the real economy and empower real enterprises to improve quality and efficiency, this study regards the CEO as a high-end innovation resource and aims to empirically test the impact of scholar-type CEOs on the industrial artificial intelligence (AI) transformation of manufacturing enterprises.Design/methodology/approachGrounded on the upper echelons theory, this paper preliminarily selects A-share manufacturing listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that are affiliated to enterprise groups from 2014 to 2020 as samples. Furthermore, the Logit regression is conducted to analyze the influence of scholar-type CEOs about industrial AI transformation.FindingsThe results show that scholar-type CEO plays a significant role in promoting industrial AI transformation. The parent-subsidiary corporations executives' ties positively moderates the impact of scholar-type CEOs on industrial AI transformation. Further, internal control quality plays a partial mediating role between scholar-type CEOs and industrial AI transformation. Compared with private enterprises, scholar-type CEOs play a stronger role in promoting industrial AI transformation of state-owned enterprises.Originality/valueFirst, this paper expands the research related to the influencing factors of industrial AI transformation based on upper echelons theory and clarifies the influencing mechanism of scholar-type CEOs affecting industrial AI transformation from the perspective of executives' behavior. Second, this study further enriches the research framework on the economic consequences of scholar-type CEOs and provides a useful supplement to the research literature in the field of upper echelons theory. Third, this paper is not limited to a single enterprise but involves the management practice of resource allocation within the enterprise groups, further clarifies the internal logic of the decision-making of industrial AI transformation of listed companies within the framework of enterprise groups, providing theoretical reference for the scientific design of the governance mechanism of parent-subsidiary companies.

Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?

ABSTRACT The implementation of innovation-driven and regional collaborative development strategies of China has injected new vitality into corporate trans-regional operation and collaborative innovation. Accordingly, listed companies expand the distance between parent and subsidiary in space geographically. This paper discusses the effect of geographic distance between parent and subsidiary companies on corporate innovation. The results show that parent – subsidiary company geographic distance has a significant positive effect on corporate innovation performance. The results still hold following a battery of endogeneity test and robustness check. We also find that government subsidies, information acquisition, and construction of internal capital markets are the mechanisms for the effect to work. In addition, the stimulative effect of parent – subsidiary geographic distance on corporate innovation performance is more pronounced for SOEs, under better intellectual property protection, and for eastern and central China. This paper not only refines the research on corporate innovation at the spatial level for parent and subsidiary companies, but also provides a framework for corporations to implement regional collaborative development and to adhere to a belief in innovation. It can also assist the government in creating a unified national market.

The effect of the industrial networks within business groups on the quality of accounting information: evidence from China

ABSTRACT We construct the parent-subsidiary industrial network within listed business groups in China. The results show that the higher the density of parent-subsidiary industrial network, the lower the quality of accounting information of listed companies. The more the parent company is in the centre of the industrial network, the higher the quality of accounting information of the listed company is. Geographical diversification of subsidiaries will intensify the adverse impact of industrial network density on the accounting information quality, and will restrain the parent-subsidiary industrial network governance effect in terms of the centrality of the listed parent company’s industrial network. Based on agency theory and the empirical results of our research, it can be inferred that the parent-subsidiary relationship in the accounting information manipulation of listed business groups is more inclined to a parent company’s supervision of its subsidiaries rather than the ‘collusion’ manipulation of the parent-subsidiary companies.

Assessment of parent-subsidiary companies’ geographical distance effect on corporate social responsibility: a case of A-share listed companies

Corporate Social Responsibility (CSR) is considered as an important business agenda in the current age. Based on the data of A-share listed companies from 2010 to 2020, this study used a fixed-effect model, heterogeneity analysis and intermediary effect test to investigate the relationship between parent-subsidiary geographical distance and CSR. Our study findings revealed that the parent-subsidiary companies’ geographic distance has a negative effect on CSR. Results of our study further indicated that the effect was more stronger for non-state-owned enterprises and the firms in the eastern region. Findings of our study also reported that the enterprise internal control had an obvious mediating effect in the association among parent-subsidiary companies’ geographic distance and CSR. The government needs to reinforce legal construction, actively guide enterprises to perform CSR through incentive measures, and implement special supervision on enterprises with a large number of subsidiaries. This study not only enriches the literature on the factors influencing corporate social responsibility but also provides a theoretical perspective and important ideas for the effective implementation of regional diversification and the improvement of CSR levels in practice.

Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?

Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?

Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?

Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?

Power Allocation and Investment Efficiency of Parent-Subsidiary Company<br/>—Empirical Analysis Based on the Perspective of Subdivision of Power

Taking Shanghai and Shenzhen A-share non-financial listed companies in 2009 and 2019 as samples, from the perspective of financial rights and personnel rights, this paper makes an empirical study on the relationship between their allocation between parent and subsidiary and the overall investment efficiency of listed companies and their subsidiaries, and further analyzes the moderating effect of the two on the above two relationships. The research shows that: 1) in the current stage, the concentration of financial rights improves the investment efficiency of the parent-subsidiary company; 2) the concentration of the power over personnel has an inverted U-shaped relationship with investment efficiency; 3) from the moderating effect of the two, the concentration of financial power flattens the inverted U-shaped relationship between the concentration of personnel power and investment efficiency; 4) the concentration of personnel power amplifies the promoting effect of financial power concentration on investment efficiency, but this effect is not clear at the low level of personnel power concentration. The research of this paper is helpful to provide more concrete and operational reference and suggestions for the management and control of enterprise groups.

Parent-subsidiary Companies Institutional Distances, Independent Directors' Nature and Earnings Management

Enterprise collectivization has been the development trend of listed companies, the development of collectivization increases the geographical diversification of enterprises, and the institutional differences between parent and subsidiary companies increase accordingly. This paper studies the influence of the parent-subsidiary system distance on earnings management of listed manufacturing companies in China, and explores the role of independent directors in the management of companies, extending the research perspective of earnings management to the distribution of parent-subsidiary companies. Based on the parent-subsidiary data of manufacturing A-share listed companies from 2008 to 2016, the empirical research results tells us as follows. Firstly, the greater the institutional distance between parent and subsidiary companies is, the greater the accrual earnings management and the real earnings management of enterprises will be. Secondly, further research shows that independent directors' related natures, such as educational background and political background, play a negative moderating role in the relationship between parent-subsidiary company distance and earnings management, and a good independent directors' nature is helpful to enterprise management.

Research on the governance of parent-subsidiary company under the mixed ownership mode

As the core content of state-owned enterprises reform, Chinese state-owned enterprises have some problems in corporate governance for a long time, which restricts the process of the reform and development in these enterprises. As a breakthrough in deepening the reform of state-owned enterprises, the mixed-ownership reform has opened up a new theoretical research direction and reform practice space for state-owned enterprises to carry out and improve corporate governance. Under the framework of corporate governance and contemporary property rights theory and based on the analysis of the characteristics and existing problems of corporate governance in Chinese state-owned enterprise groups, this paper summarizes the framework and specific measures that can be taken by state-owned enterprises to improve corporate governance under mixed-ownership reform.

이사의 선관의무와 내부통제에 관한 회사법적 고찰 - 경영판단의 원칙의 적용 및 기업집단에 관한 논의를 중심으로 -

이사의 선관의무와 내부통제에 관한 회사법적 고찰 - 경영판단의 원칙의 적용 및 기업집단에 관한 논의를 중심으로 -

Directors’ Duties and Liability in Corporate Groups: A Japanese Perspective

This article examines the issue of directors’ duties and civil liability from a Japanese perspective, particularly in the group context. Regulation of group companies has been widely discussed in the company law debates of Japan, but the article focuses on the reform initiative that resulted in the amendment of the Japanese Companies Act in 2014. Directors’ duties and civil liability have always been central in company law. However, when we place it in the group context, multiple difficulties arise and the facts that may require special protection could vary. The article analyses how the past and present Japanese company law, including the 2014 amendments, has attempted to cope with the multiple difficulties surrounding regulation of parentsubsidiary companies and protection of stakeholders of either company, in some typical patterns of the facts, and consider the remaining issues towards future.

Potential Lawsuit Risk and Auditor Conformity of Parent-Subsidiary Company

Potential Lawsuit Risk and Auditor Conformity of Parent-Subsidiary Company

The Relationship between Auditor conformity of Parent-Subsidiary Company and Earnings Management

The Relationship between Auditor conformity of Parent-Subsidiary Company and Earnings Management

The Influence Factors of the Incentive Mechanism of Chinese Enterprises‘ Horizontal Integration

In the process of Chinese enterprises horizontal integration, it is the key factor affecting the effects of integration that the choices of the incentive mechanisms between parent-subsidiary companies, which is also a hot issue urgently to be solved in present practice and theory. This paper analyzes these factors that influence choices of the incentive mechanism in horizontal integration, respectively from perspectives of the institutional environment, industrial environment, enterprise managerial tradition and managers cognition. It also puts forward the research model of the factors influencing choices of Chinese enterprises incentive mechanism, in order to guide enterprises‘ horizontal integration practices in our country.

Determinant of Accounting Standard, Between Parent and Subsidiary Company Operating In the Globa Community

The study examines the Determinant of Accounting Standard between parent and subsidiary company operating in global community using manufacturing company in Nigeria These firm lack accountability and transparency and distortions in financial report which leads to poor financial reporting .The data were gathered by the use of questionnaires and analyzed using binary logistic regression and the z-test statistics to ascertain whether it is the parent company that determines the accounting standard harmonization of accounting standard or the local culture and environment have any impact on the determination of accounting standard in parent and subsidiary relationship. The findings suggest first, Harmonization of accounting have impact on the determination of accounting standard in parent subsidiary relationship, and secondly, that local culture and political environment have impact on determination of accounting standard in parent subsidiary relationship. The study therefore recommend that the firm should be more transparent, accountable in compliance with the accounting standard which gives the financial statement credibility, reliability and comparability globally, this will help the preparation of consolidated accounts. The firms should work with executives who have skills to deal with a variety of local cultures and brings diverse team together to achieve common goal. Keywords - Accounting standard, Accountability, comparability, Nigeria and Parent subsidiary company.