Research And Application Of Marketability-Based Valuation Model For Listed Companies

It is a significative study to evaluate the corporation value from the published financial report. Currently, there are more than 1,000 listed companies (LCs) in the stock market. The State and Restricted Institutional Shares (RIS) occupy about two third of total share outstanding issued by listed companies. The ownership structure of Chinese listed companies is highly concentrated and the owners of State and RIS shares are usually hold most parts and control the companies. Those stocks cannot be exchanged in stock markets or in any public way. The different prices for different categories of shares but with same ownership rights distort the pricing mechanism in equity market, damage the market efficiency in resources allocation, and destroy the incentive and constrain mechanism of control shareholder.The relevant problem is how to reduce state-owned shares. The state-owned shares lessening problem, which will change greatly the listed companies ownership structure, has serious impact on Chinese secondary stock market. The state-owned shares lessening related problems aroused the most intensive debates in more than 10 years history of Chinese stock market.Based on the fundamental theories in financial economics, especially in corporate finance, this thesis analyzes the price model for listed companies'value in the perspective of marketability.Firstly, we tried to set up a framework for scaling the value of State Shares and Restricted Institutional Shares. Secondly, we built up a price model for listed companies'value using the published financial report and the positive tests have been done using stock market data of last years. Finally, the State-Owned Share Lessening issue was introduced and we did lots of research to set up a framework for price model of the State-Owned Share Lessening. Policy suggestions have also been given for the institutional reforms.