Listed Companies Operating Performance And Economic Cycles In China

Enterprise is the cornerstone of the Chinese economy and a pioneer in economic development. As a micro-macro individual listed companies play an increasingly important role in China's economy.Since the 90s of the 20th century, China's stock market from scratch and develop very rapidly, the end of 2009 the total market value of listed companies reached 167-182% of GDP. The rapid development of securities markets, produce an increasingly important and profound impact on China's economy and society:the securities market promote China's economic system and enterprise to reform, promote the progress of the financial system. With the development of China's capital market, operating performance of listed companies and the relations between the economic cycle, there are many disputes. Many scholars believe that the linkage between them is not strong, or even they depart from each other's.After two decades of China's securities market development, it is from weak to strong, from immature to mature, grow up through the many ups and downs, making the declining business performance, and departure from the macro-economic cycle. But the listed companies has been reborn through a series of the government policy reforms, and now is quite different. If investors, regardless of conditions, regardless of the situation develops, all copying a model, will be difficult to make a reasonable assessment of listed companies, and even counterproductive. Therefore, for the relationship between listed companies and macroeconomic, investors should judge whether an enterprise value of rational look at this situation. This helps investors to analyze the profitability of listed companies in China, then China's capital market for improving the efficiency has an important role. Therefore, this study has important practical significance.Based on the above considerations, we take the data for the sample of listed companies in China from 1996 to 2009 to study the relationship between the performance of listed companies and the economic cycle. First find in operating performance of listed companies can be divided into two phases:1996-2005 as the first stage; for the period 2006-2009 for the second phase. Two stages of development is not the same, and the levels of development vary greatly. This paper thus established between the two panel data model to analyze the macroeconomic situation, company size, corporate leverage, industry four factors impact on business performance, and analysis the first phase of the deviation between the two appears in-depth.The article concluded:The first phase of the operating performance of listed companies is negatively correlated with economic cycles, the resulting performance landslide of listed companies over the past decade is the profit manipulation of IPO (initial public offering). Second, we controlled the IPO effect, we find that the operating performance of listed companies and the volatility of macroeconomic cycles is the same. The second phase of the operating performance of listed companies and the business cycle are positively correlated.