The Analysis of Asset Correlation between Parent and Subsidiary Company
Chen Lin, Zhou Zongfang
Abstract
Chen Lin, Zhou Zongfang
Abstract
The relationship between parent and subsidiary company makes them have more interaction in the market. In this paper, we focused on the asset correlation between parent and subsidiary company such as in an enterprise group. Based on the relation of shareholding, we get the explicit function between the asset correlation and shareholding that Parent company holds of the Subsidiary Companypsilas. Our researches show that with the shareholding amount increasing, it is possible that will increase or decrease their asset correlation.
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The relationship between parent and subsidiary company makes them have more interaction in the market. In this paper, we focused on the asset correlation between parent and subsidiary company such as in an enterprise group. Based on the relation of shareholding, we get the explicit function between the asset correlation and shareholding that Parent company holds of the Subsidiary Companypsilas. Our researches show that with the shareholding amount increasing, it is possible that will increase or decrease their asset correlation.
Key concepts: Asset (computer security), Subsidiary, Parent company, Relation (database), Business, Correlation, Function (biology), Negative correlation