An Empirical Study On The Performance Of Listed Companies In China Whose Controlling Stockholders Have Been Changed

This paper selects alteration of the controlling stockholder (ACS) events of China-listed companies happened in 2000, and analyzes their impacts on corporate financial performance and market performance. The events are classified into several groups according to transfer mode and corporate characteristic of the new stockholder. We use event study and comparative study as the main methods, the first of which are frequently seen in stock market analysis. Distinguished with traditional studies, both financial and stock price performance are analyzed simultaneously, and their correlations are discussed.Our study leads to the following results: (1) while ACS, as a whole, does not have significant effects on the improvement of corporate financial performance, those ACS events completed by contracts play positive roles. (2)market performance calculated with accumulated abnormal return (AAR) changes in the same direction as financial performance. Further analyses prove that the market performance and financial performance are in a linear correlation, however, which permits deviations and even discordances in certain cases. (3)investors' behavior is rather rational with a little evidence of overreaction found in the event windows.Based on our research, it is suggested to promote marketization of ACS.