Study On The Transformation Of Listed Parent-subsidiary Company System

The system reform of urban economy which has been on ever since the middle of 1980s in China has focused on the transformation of state-owned enterprises into joint-stock companies which bear the responsibility for their own management and gain and loss. Over the last twenty years, the listed companies in China has reached the amount of more than 1250, which have become the main body of socialist market economy, and made great contributions to the development of economy in recent China, However, the point we can't ignore is that there still exist many problems in the stock reform of Chinese enterprises, especially the negative effects brought about by the unreasonable system of parent company and its subsidiaries, which has become one of the difficulties of the reform to be resolved urgently. This paper attaches importance to the system reform of parent company and its subsidiary, aiming at providing valuable reference to resolve the present problems. This paper illustrates the development and current states of company system both at home and abroad; analyzes the characteristics and various modalities of the parent-subsidiary system under different developed market economy, compares the practical modalities of the system, and points out the specific characteristics of the system in China and its existing problems. This paper studies the existing parent-subsidiary system based on the theory of commission and proxy, analyzes the internal relation between the system and such illegal activities as related trade-off, performance distortion, taxation decrease, false information, etc., and points out that many illegal activities of the subsidiary can be traced back to the unreasonable parent-subsidiary system in existence. This paper also researches the theory and way to the transformation of listed company system on the basis of transitional economics theory, analyzes the enlightenment of gradual reform in China on the transformation of company system, constructs the theoretical framework of company system transformation in terms of the theory of system economics and system transformation, and provides a feasible way of system transformation, i.e., first of all, develop the listed company, then annex the high-quality assets of the parent company progressively, and finally realize the transformation of the parent company into asset management company. This paper takes Handan Iron and Steel Group Company as an example and carries on the positive research, analyzes the current system of property rights, compares the superiority and inferiority of the project of cold-rolling steel sheet under different systems of property rights, indicates the probability and necessity of property rights system transformation, and also demonstrates the way of transformation. This paper concludes that system transformation of companies is an effective way of sustainable development of enterprises. It finds that when eliminating the abnormal related trade-off of the company, Handan Iron and Steel Group Company has improved its effectiveness compared with other steel companies of the country, which shows that this kind of transformation is feasible, and can contribute to the improvement of both business competence and economic benefits. Therefore, it proves that the way of system transformation of parent-subsidiary emphasized in this paper shows both theoretical and practical significance to the system transformation of property rights in China.