The Analysis On Transfer Price Of Chinese Listed Firms

Price is the crucial factor when M&A occurs in stock market. The transfer price of the non-tradable shares concerns benefits of extensive people, how to price the non-tradable shares reasonably is very important to the strategy investors, institutional investors, individual investors and the two bargaining parts. How to evaluate the premium of transfer price, what is the key factors to determine the transfer price and how to price the non-tradable shares reasonably are the main topics in this paper. There are two methods in pricing the non-tradable shares at present, net equity method and benefit bargaining method. Net equity method in which the transfer price is relevant to the net value can not indicate the market value of the company, so this method can not guarantee the impartiality to the both sides. Benefit bargaining method in which the transfer price is the results of bargaining, thus determining the value of the non-tradable shares is crucial to two bargaining parts.After statistical analyzing the cases of non-tradable shares transferring, we find some indicators to show the premium level including equity indicator, profit indicator, revenue indicator and stock price indicator. After analyzing the premium level of various kinds of companies, we conclude that the premium level is relevant to the company's profit and independent of qualification of the second public offering and independent of the proportion of tradable-shares to the whole shares. After further statistical analyzing the premium levels of profit outstanding companies, profit normal companies and negative profit companies, we can give some reference to the transfer pricing of the non-tradable shares using the analogy method. After regression analyzing the transfer price, we can give some reference to the transfer price of the non-tradable shares using the regression method.