| Reform is innovation on the base of correction,identically in the capital market.Equity division reform is the fundamental reform in the capital market.Owing to reconfirmation of value of shares in the process of reform,achieving the overall listing by stock payment has been the subject in the capital market.The real intention that regulators promote the overall listing is to solve the problem remaining about spin-off listing in the initial development of capital market.The common conclusion about overall listing is that the behavior damages the interests of the listed company that arouses extensive concern.However,as all known,M&A is more and more active with expanding scale and depth due to stock payment especially so the purpose of M&A transformsgradually.from overall listing to industry consolidation.Obviously,overall listing makes a good start for the innovation of method in M&A,so we need to do comprehensive research.This paper selects 112 overall listing companies from 2006 to 2012 as samples comed from CSMAR and Ifind database.After overall listing,the amount of connected transactions decreases significantly.The reduction for every unit in connected transactions(transaction amount change/total assets)can improve 3.623 units performance.The reduction for every unit in connected transactions(transaction amount change revenue)can improve 3.363 units performance.The results mean that the restriction of connected transaction between controlling shareholders and the listed company can really improve the perfomance of listed companies mainly due to the unfair pricing in connected transactions with the possibility of profit tunnes.Overall listing reduce the possibility of connected transaction between controlling shareholders and the listed company which blocksprofit transfer.We further do the research about the improvement in the level of corporate governance that the overall listing can bring.We estimate that after overall listing,institutional investors would accept performance improvement,thus they would push up the proportion of institutional shareholding.By empirical analysis the relation among overall listing,profitability and institutional investors,we conclude that after overall listing,earning ability is positive associated with proportionof institutional shareholding,which suggests that overall listing brings the improvement of corporate governance that is consistent with our previous studies.That is to say,the reduction of contradiction between connected transactions and competition after overall listing promote sustained profitability positively,meanwhile,the ultimate motivation that institutional investors participate in corporate governance is to obtain the return.As a result,the greater the improvement in profitability after overall listing,the more attraction to institutional investors.We then test the possible impact on financing constraints after overall listing.The empirical results show a significant positivecorrelation between the level of investment and internal cash flow before overall listing,that is,internal cash flow encourages the level of investment that suggests investment depends on the internal cash flow.After overall listing,they still show positive correlation,but statistically insignificant which means that the level of corporate financing constraint is significantly reduced after overall listing.In conclusion,we find that Holistic Listing can directly reduce related transactions,alleviate agent problem,help to protect the interests of small and medium investors.When overall listing is completed,the listed company's performance improve significantly and attract institutional investors which contribute to make corporate governance perfect.We also find that,overall listing can also relieve financing constraints,promote the capacity of corporate finance in the given level of financial development.The effect of Holistic Listing on profitability,corporate governance and financing powet provides support for the related regulatory agencies. |
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