Comparative Study On Profits And Losses Of China's Listed Companies

China's Shanghai and Shenzhen Bourses were regularly established inDecember 1990. At that time, listed companies were fewer. But China stock market has greatly developed and gained world-famous achievements during only 11 years. The scope of the stock market is enlarging stage by stage. Statistically, there have been 1154 listed companies in A-shares and B-shares market in China by the end of 2001.The bad or good benefit has existed when companies were listed so that the profit companies and loss companies are produced. There are various reasons for outstanding achievements by listed companies. So do for losses. During recent years, a lot of study on profits and losses was undertaken to listed companies by economic and stock circles in China. The related articles were often published in newspapers and magazines. But the articles only analyzed the profits and losses on individual listed companies or on a group of listed companies which was lack of systematic and overall study, especially lack of comprehensive research in comparative way. To oversea scholars, only fewer in Hong Kong and Taiwan discussed the profits and losses to mainland listed companies. Therefore, to conduct a systematic and overall study and comprehensive comparative study have not only a great theoretical significance but also a necessitous practical significance.The main objective of the paper is to explore the reasons of profits and losses for listed companies and provide basic train of thought for loss reduction and earning increase. The study approach of the paper is to adopt induction and comparison. Specifically, the author firstly reviewed and summarized the history and current situation of profits and losses of listed companies. Then a certain number of profits and losses companies as samples were selected from over 1100 listed companies from A-share market in China based on some standards and were analyzed as specific cases. Finally, the author systematically analyzed the internal factors and external environment on profit level and expanding ability of the two types of listed companies through concluding and comparing varied factors such as their trades, regional distribution, equity interest structure, connected transaction, debt situation, reorganized action, invested action, profit assignment, loss and earning fluctuation, listing package andJillegal action etc. All of these try to reply: 1) What the main reasons are causing profits and losses of listed companies. 2) Which fundamental problems should be solved for reducing loss and increasing earning of listed companies.Besides, the paper also studied theoretical problems related to loss reduction and earning increase and provided the author's unique viewpoints which are: firstly, it is necessary to strengthen macro-control for socialist stock market. Loss reduction and earning increase of listed companies must be based on stressing of macro-control. Secondly, it is not the rootstock by dominated share which caused varied problems to China's listed companies. You should accurately recognize the relationship between dominated share and improvement structure of company. Thirdly, current person use and incentive mechanism are imperfect. Effective person use and incentive restrict mechanism should be established by listed companies. Fourthly, some laws and regulations related to risk on guard for listed companies must be formulated and improved, and law execution must be enforced. Only such phenomena as no laws to go by, the laws not be observed and strictly enforced are stopped loss reduction and earning increase can be realize.