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Empirical Study On The Impact Of The Split-share Structure Reform On The Performance Of Chinese Listed Companies

Posted on:2011-01-05Degree:MasterType:Thesis
Country:ChinaCandidate:J GuoFull Text:PDF
GTID:2189330332482617Subject:Enterprise diagnosis
Abstract/Summary:PDF Full Text Request
Split share structure is a unique institutional arrangement in China. There are tradable shares and non-tradable shares in shares of listed companies in China and the state-owned shares and legal person shares can not be traded, and only 1 / 3 of the public shares can be circled in the secondary market freely. This special system has affected seriously the healthy development of China's securities market, which the management began to try to resolve the ills. After discussion and exploration of several years, the share reform started in 2005. Split share structure reform is to completely solve the problem to dual share structure, to achieve tradable shares of listed companies, to achieve the target: the same rights with the shares, with shares of the same benefits and with the shares of the same price.So far, the split share structure reform has been processing for five years and the share reform has been basically completed, entering the era of post-split share structure. Many listed companies have achieved the circulation and the non-tradable shares of capital market are increasingly less and less. In the influence of split share structure reform, ownership structure of listed companies has been greatly changed. However, what changes the split share structure reform of listed companies have brought to corporate performance? Is to increase or decrease it? This will also be theme of this paper.In order to study this split share structure reform of listed companies on the impact of corporate performance, this paper selected two samples, taking the shares tradable brought by split share reform as the background, a set of samples is the listed companies that have achieved circulation in the end of 2008, another group of samples is all the listed companies; in the choice of performance indicators, taking into account the performance of listed companies tend to be diversity, but a single comprehensive financial indicators can not reflect the company performance, so we chose 10 financial indicators. Of them ,we used a share, profitability, asset quality, solvency and the ability of companies operating to reflect the level of corporate performance; then used factor analysis to compare composite scores before and after the change in corporate performance from both horizontal and vertical for the financial data from 2007-2009 of the two sets of samples of the company. Ultimately, it came to the split share structure reform of listed companies in China does improve corporate performance; and comprative analize the performance of listed companies by public life ,economic areas and sectors,and made policy suggestions how to improve company performance in post-split share Time by final results.The innovation lies in this:First, innovations in sampling. Previous studies focused on completed share reform, and few studies choose listed companies tradable through split-share reforming as a sample to study the impact on listed companies performance. The latter can more accurately reflect the effect brought by split share structure reform; Second, we use the date of sample company in 2007, 2008 and 2009 which is the latest so that it more accurately reflect the impact of the split share structure reform; moreover it comparatively studied the sample of companies from horizontal and vertical, excluding the change that external factors such as macroeconomic environment to the company's performance, retaining only the share reform the factors possibly, which can guarantee the credibility of research findings.This paper have some innovations in sample selection and research methods, but in index selection, we selected 10 indicators from five different aspects to reflect the company's financial performance, which may overlook some of the more important relevant indicators; and not take into account financial indicators'weight of 10 indicators, so the final result may be impacted; because of the constraints of research time and data, some aspects of this analysis is not very deep, which is a great pity of this article.
Keywords/Search Tags:split share structure reform, ownership structure, corporate performance
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