Font Size: a A A

A Study On Ownership Structure And Corporate Performance After Split-Share Reform

Posted on:2010-10-20Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y LiuFull Text:PDF
GTID:1119360302495086Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Split-share structure is a unique phenomenon of China. It means that there are two different kinds of stocks in the Chinese stock market. These two kinds of stocks have different prices, profits and rights. Because of the existence of this phenomenon, China's securities market has some disadvantages about the financing function, pricing and resource allocation functions; it also makes the further development of the market lack basic infrastructure. In order to completely solve these problems, on April 29th 2005, the stock supervise committee of China promulgated a document and begin a new exploration of comprehensive settlement of the shareholder structure.The split-share reform whose goal is to make arrangements for the reform of its non-tradable shares to be listed,want to make a perfect market-based system and operational mechanism. As an institutional change, the split-share reform changed to correct pricing mechanism, promote the corporate governance of listed companies, improve and promote state-owned assets management system and reconfigure capital market rules. After the split-share many changes were brought in the capital market and the corporate governance of listed companies, which the most significant and direct impact on the equity is brought about changes in the ownership structure and acting of shareholder which was affected by ownership structure changing. The study was started response to those questions.First, the study was started from historical evolution of the split-share structure. According to institutional economics theory, the split-share reform is virtually a compulsive institutional change in which the force of government is dominant, instead of a induced one. Then, this paper puts forward the reform of the share-trading options, and pointed out the changes in the capital market trends after the split-share reform.Second, the author analyzes the relationship among ownership structure, corporate governance and corporate performance and deeply describes the inner mechanism about how ownership structure influences corporate performance. By analyzing the connection of ownership structure, corporate governance, corporate management, competition and corporate performance, the author gets an analytical framework of empirical analysis. The paper shows the act of shareholders through building a model about the consideration rate between the two kinds of shareholders. Through establishment of major shareholders of the tunnel model, the tunneling of big shareholder was analyzed.Third, the data were selected from 237 listed companies who have taken split-share reform first in order to analyze the relationship between ownership structure and corporate performance which shows effects the split-share reform has taken.Finally, according to the results of theoretical analysis and empirical study, some advices were given on improve the overall level of corporate governance of china's listed companies and improving supervision.
Keywords/Search Tags:Split-share Structure, Corporate Governance, Ownership Structure, Corporate Performance, Tunneling
PDF Full Text Request
Related items