China's Listed Companies Reshape The Study

This dissertation studies the reconstruction of Chinese listed companies which are the foundation of Chinese security market. Because of some historical reasons, lots of problems exit in the listed companies, affecting the effective allocation of security market's recourses. Therefore, it is an impressing task for us to reconstructure and consolidate our listed companies. The paper consists of six chapters. The first one, also the subtract, discusses the necessity, implication and content of reconstruction of listed companies. Company reconstruction includes the reconstruction of company's object, management frame, strategy, as well as capital structure. Company reconstruction has both difference and close link with other kinds of corporate moderation or reestablishment. The second chapter demonstrates that the essence of a corporate is to maximize the value of shareholders. To realize it, listed company should regard shareholders as service center and take a series of actions like perfecting corporate strategy, management, capital running, etc. As the creation of corporate value embodies in the EVA, or more specifically, in the MVA, value management should be centered. Mostly transformed from the state-owned enterprises, Chinese listed companies are severely deficient in the concept of serving for shareholders and value management. Thus, it is the prerequisite for our companies to reestablish their object and the concept of maximizing shareholders' value which implies all management aims at value creation. The third chapter analyses the relationship between corporate governance and corporate value and discusses that a fine cooperate governance is the guarantee of maximizing shareholders' value. Corporate governance mainly composes clarification of property rights, reasonable allocation of property rights, and the derivative benefit simulative mechanism. Meanwhile, The board and the supervision committee also take a very important role in modern business mechanism. Therefore, emphasis should also be put on the reconstruction of shares, board and supervision committee. The reconstruction of shares ought to be the prerequisite asmost Chinese listed companies are stated-owned ones and their shares are divided into circulative shares and non-circulative ones. To reconstruct shares is to establish a private property right system that agrees with the over-competitive market where listed companies exit, and to implement total share circulation, reconstructing the foundation of the stock market. Management incentive plan is a must in modern business management and stock option plan is a effective way to tackle the complex inprincipal-agent problem.The fourth chapter firstly discusses cooperate strategy is the decisive factor in its value creation. Cooperate strategy consists of two layers, one is business related and the other is the whole enterprise related. The former one is concerning how to build sustainable competitive edge on a specific and recognizable market. And the latter one refers more to industry choice. It can upgrade cooperate potency in value creation to choose an attractive industry and build up competitive advantages. Most Chinese listed companies are stuck in over-competitive industries that are lack of magnet; and are superstitious of diversification. So industry transformation of listed companies is also an important task in reconstructing their development strategy. In addition, uneconomic scale is another common problem in Chinese listed companies. As listed companies are only parts of their parent companies, they are lake of independency. Therefore, it should be put in the first place to list the whole main businesses of parent companies under the help of the listed parts, and further strengthen and enlarge the companies through industry moderation. The fifth chapter analyses capital structure, another factor affecting value creation. Capital structure has close connection with management and share construction, as different management mode produces different capital structu...