Author(s)

Zangen Lin ¹, Lan Xiao ², Seoyeon Song ³

Affiliation(s)

¹ College of Management and Economics, Tianjin University, Nankai District, Tianjin, China
² School of International Business, Tianjin Foreign Studies University, Tianjin, China
³ School of Economics, Nankai University, Tianjin, China

Corresponding Author

Zangen Lin

ABSTRACT

With the development of society, tourism industry plays a more and more important role in national economy. The existence of governments' control rights provides a method for the governments to intervene the listed companies. So, this paper uses the ultimate control theory to study the relationship among government cash flow rights, ultimate control rights and the performance of listed tourism companies. The results show that the governments' cash flow rights have significant positive correlation with those listed tourism companies’ performance. Cash flow rights generate an "alignment effect" between the governments and Chinese listed tourism companies, which makes positive stimulus to the governments. Secondly, the governments’ ultimate control rights have a positive correlation to the performance of Chinese listed tourism companies. Governments' ultimate control plays a positive role in the performance of Chinese listed tourism companies. 

KEYWORDS

China's tourism company, government cash flow right, ultimate control right corporate performance, empirical analysis

CITE THIS PAPER

Zangen Lin, Lan Xiao, Seoyeon Song, The Empirical Analysis of Government Cash Flow Right, Ultimate Control Right and Corporate Performance Based on China's Tourism Company. Accounting and Corporate Management (2022) Vol. 4: 47-57. DOI: http://dx.doi.org/10.23977/acccm.2022.040207.

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