Research On The Concentration Ratio, Financial Structure And Performance Of China's Listed Aviation Companies

The aviation industry is closely related to the fictitious economy system of modern society. The promoting of companies' value through capital market has represented the path selection of the development of China's aviation industry. Listed aviation companies are the vehicles of the combination of virtual and tangible capitals and the representation of social capital. Their development has been drawing more attention. Based on the latest results of the researches on modern industrial organizations and financial structure theories, this treatise makes an empirical analysis of the concentration ratio, financial structure and the performance of the companies to inquiring into the capital integration path of China's aviation industry.The treatise first makes a general economic analysis of the characteristics and development of China's aviation industry, which is the background and theoretical basis of the research. It then examines the industry concentration of listed aviation companies and the market concentration of their products in the specific sub-industries they come from, and studies the factors affecting the concentration of the industry. It further examines listed aviation companies' financing preference and behaviors in capital market, financial structures and their fluctuation trends, factors affecting financial structures, and discusses the influences of their financial structures on their concentration from theoretical and empirical perspectives respectively.It later discusses the relationships between listed companies' performance and concentration ratio, performances and financial structures respectively, and between their performances and concentration ratios together with financial structures. Finally, a synthetic evaluation is made on the companies' operational performances.The study results showed that the emergence of the pattern of China's aviation enterprise-groups is inherently consistent with the development trend of international aviation industrial organizations, and the listing of companies honestly represents mainstream capital operation. Thanks to the special status that the aviation industry enjoys in national economy, China's aviation companies show the characteristics of remarkable availability for resources.Within the studied time span, the market structure of China's listed aviation companies shows highly concentrative oligopoly: stable operation performances, low operation risks, similar company sizes, a lack of overwhelming leading companies, the absence of the effects of large-scale economies, the compatibility of companies of same sub-industries, the low competency of their non-aviation products, and inability to support the development of the aviation industry as a whole. Thus, the paradox is of the mismatching both the place among non-aviation products in the market and the market structure of highly concentration.China's listed aviation companies have neither shown strong equity financing preference nor changed the country's listed companies'pertinacity for equity financing preference which has been shaped by the institutional environment of additive issued shares and rationed share and the availability for resources.Therefore, A point of view of focused equity financing has no theoretical basis through the lower asset-liability rate of listed companies.The study shows ownership structure and concentration are the two significant factors affecting the financial structures of listed aviation companies; and the optimization of stock ownership, property rights and company management structure are still goals pursued by the companies. The study also finds that debtor-in-possess in structure is still a factor affecting listed aviation companies'product market competition and concentration ratio while asset- liability ratio shows little impacts on them, which shows that the capital operation of listed aviation companies does not have enough impact on their integration of industrial resources and the combination of virtual and tangible capitals in them is inadequate.Within the studied time span, the capital operation performances of aviation companies were improving, while their production operational performances first improved but then worsened; their general industry performance operation remains stable, showing few fluctuations.The companies'concentration ratio and performance show a paradoxical relationship: relevant but at the same time irrelevant. The paradox is a result of the mismatching among certain industry characteristics, natures of the enterprises, industry and product structure but the influence of traditional planned economic system and government regulation are deeper reasons. The study also finds that listed companies, by increasing debt financing, are able to improve capital operation performances but unable to improve production operation performances; on the contrary, by expanding the scales of enterprises, they are able to improve production operation performances but unable to improve capital operation performances. This finding to some extent demonstrates the universal theory that the deficiency of the combination of virtual and tangible capitals affects performance. It is therefore necessary to pay due attention to the problem in China's listed aviation companies.A comprehensive evaluation on the operational performances of listed aviation companies is inevitably solicited in a study of their industry performances. Using factor analysis and taking the time factor into account, this treatise makes a dynamic analysis of China's listed aviation companies' operational performances. The study results showed that the companies'performances in aircraft manufacturing are better than others'.