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Analysis Of The Effect Of The Share-trading Reform On The Acquisition Performance Of The Listed Companies

Posted on:2012-12-08Degree:MasterType:Thesis
Country:ChinaCandidate:J LiuFull Text:PDF
GTID:2189330335953119Subject:Business management
Abstract/Summary:PDF Full Text Request
China's share reform started from April 2005 and completed basically on October 2006. However, little is known about the effectiveness of the share reform, in particular the impact of split share structure reform on listed company acquisition performance. The objective of this study is to provide a theoretical basis for the company acquisition performance. To address this, the effect of share reform on company acquisition performance (M & A performance) was investigated on the background of split share reform, combining with the current theoretical trends.In order to evaluate the performance of the listed companies completely, this study acquired the total scores of the performance for the sample companies using factor analysis, and made an empirical analysis on the effects of the ownership structure on the companies'benefits after the split share reform, basis on the latest data from 96 list companies during 2006 to 2009. To achieve this analysis, 8 financial parameters including return on equity (ROE), return on total assets (ROA), total assets, current asset turnover, debt ratio, earnings per share and capital accumulation was chosen as the M & A performance measures from 4 main areas involving financial benefits from the sample companies, capital operation, solvency and capacity development. In addition, another 7 parameters such as state owned share proportion, CR1 and Z index etc., which belongs to the property of the equity and the ownership concentration was selected as indicators for ownership structure. Finally, the present study offered a reasonable explanation for the results from the empirical analysis, and put forward several corresponding policy recommendations, combined with the special circumstances of China's capital market.According to the results from empirical analysis, the present work demonstrated that,⑴Split share structure reform of the current ownership structure of listed companies to improve the effect is not obvious;⑵Mergers and acquisitions to enhance company performance is not significant and with a certain amount of speculative in the long run;⑶The ownership structure, especially the state-owned shareholding structure property and ownership concentration make a significant effect on M & A performance. In summary, this study indicates that the share reform of listed companies had no significant effect on the enhancement of the M & A performance, and suggests that, if someone wants to improve the ownership structure through mergers and acquisitions to enhance the performance of the company, should not only depend on the split share structure reform, but should improve corporate governance structure proceeding from its ownership structure.
Keywords/Search Tags:Split share structure reform, Ownership structure, Company acquisition performance
PDF Full Text Request
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