A Study On The Performance Evaluation Of The Holistic Listed Chinese State-owned Enterprises

In a long period of time after the founding of new China, China has adopted a highly centralized system of socialist planned economic system. Under the planned economic system where competition did not exist, the state-owned enterprises were just accepters and executors of the government's plan and had no motivation to enhance economic efficiency. The state-owned enterprises were short of vitality. In 1997, the China Securities Regulatory Commission issued a notice on the stock issuance in 1997, in which the commission said :"to take advantage of the stock market to promote the reform and development of the state-owned enterprises, stock issuance in 1997 would focus on supporting the large and medium state-owned enterprises which were in the industry that concerned the national lifeline and which possessed economic scale. The departments of state council and the head corporation under the council must promote enterprises which were the subordinate of them."In policy and practice, the government took the stock market as a means of promoting the reform of the state-owned enterprises.With the development of China's stock martket and the increasing of the state-owned enterprises which listed through spining off, the shortage of spining off mode emerged gradually, such as the listd company guarantees its parent company's debt illegally, the controlling shareholders seize the listed company's benefit through related transactions. All the behaviors damages the listed company's and the minor shareholder's benefit severely. In 2003, China Securities Regulatory Commission issued a notice concerned the further regulation of the stock market debut, in which the commision passed on a signal clearly on encouraging holistic listing. In August 2007, the Stated-owned Assets Supervion & Administration Commission reaffirmed promoting large enterprise's holistic listing. When the enterprises acquired the ability, they must accelerate the speed to overall restructing and holistic listing. If the enterprised didn't acquire the condition to holistic list, they should put the good assets related to the main business into the listed company.Under the backgroud, the popular"spinning off"phenomenon in China have been the concern fo the policy circles. Therefore, some relevant reform programs have been introduced. With the development of the holistic listing, Scholars must deepen their research. It is expected to explore the"holistic listing"problem on the basis of previous study, and further the study on it in this article.Chaper 1 is the introduction which brought up the backgroud, meaning and topic of the very study. According to the study objectives, this part identifies the research ideas, research organization and research methods. Chapter 2 reviewed the theories that related to the overall listing of Chinese state-owned enterprises. This part carried out review and summary about the basic theories and literature relevant to Chinese state-owned enterprises holistic listing. Chapter 3, appling the factor analysis method, evaluates the performance of the holistic listing of Chinese state-owned enterprises. Though organizing and analysising statistically the finance data of the overall listed state-owned enterprises of China, this part applied factor analysis on the performance evaluation of the state-owned enterprises the year before their holistic listing, the year when they holistic listed, the year after their holistic listing with the software of SPSS16.0. On the basis of performance evaluation, paired sample's Wilcoxon tests are done among the three-year performances of the Chinese state-owned enterprises before and after their overall listing.Chaper 4 analysises positively the factors which influence the effect of Chinese state-owned enterprises'holistic listing. Introducing variables, such as mode of reverse acquisition of parent company, mode of merging by absorption, mode of IPO by stock conversion, the quality of the assets put in, the proportion of the largest shareholder, the proportion of the second to tenth largest shareholders, the holding level, the propotion of the tradable shares, this part applies the panel data model to the analysis and concluded that holistic listing has significant influence on the performance of the Chinese state-owned enterprises. Chapter 5 studies one of the cases of Chinese state-owned enterprises'overall listing. Though discussing the Jiangxi Cement'holistic listing in detail, this part applies the performance evaluation model to the Jiangxi Cement and evaluates its holistic listing performance, then, applies the Chinese state-owned enterprises'holistic listing performance model to the case and conluded that holistic listing improved Jiangxi Cement's performance. Chaper 6 concludes the achievement of the research, and proposes some suggestion on the problems that exists in holistic listing.The conclusions of the study is as follows:(1) By studying the holistic listing performance of the Chinese state-owned enterprises, it is found that in spite of the different influence of holistic listing on the state-owned enterprises, the Wilcoxon test is not passed among the performance of the state-owned enterprises before and after their holistic listing.(2) The study proves the holistic listing improves significantly the performance of the state-owned enterprises. By analysising with panel data model, the result reveals the fact that the holistic listed state-owned enterprises are better than the state-owned enterprises which alisted by spinning off on the respect of performance.(3) The study proves the holistic isting influences the ownership structure. The both variables, reverse acqusition of parent company mode and IPO by stock conversion mode have adverse effect on the propotion of the tradable shares.(4) The study proves the holistic listing has direct effect and indirect effect on the the performance of enterprises. The ownership structure affect the performance of enterprises and the holistic listing affect the ownership structure, so the holistic list has indirect influence on the enterprises'performance. In a word, the holistic listing of Chinese state-owned enterprises is not only the achievement of the reform of the state-owned enterprises, but also an important measure our government applies to promote the healthy and sustainable development of Chinese stock market.Holistic listing and spinning off are both specific measures of different stages that Chines stock market develops. from the reality and the developing trend, compared to spinning off, holistic listing is more suitable for the realites of the country. It promote the reform of the state-owned enterprises and the development of the Chinese stock market. It also benefit the state-owned enterprises from taking the advantage of industry and product superiority, forming economic scale. It also benefit the state-owned enterprises from accelerating the reform of modern enterprise system, enhancing the operational efficiency of the stock market.