Whether Foreign Strategic Shareholder Will Create Value

As China's economy keeps growing fast and persists in it's opening up drive, we can find that more foreign strategic shareholders exit in China's listed companies than ever before, which has significant impact on our economy. And there comes the question whether foreign strategic shareholders will create value?In our study, on the base of analyzing different motivation from the relevant parts, we firstly made the hypothesis that they will theoretically create value. After the empirical study of both short term and long term effect brought about by the foreign strategic shareholders, we verified our hypothesis.In the event study approach, we found that there exits positive cumulative abnormal turn for the stock price during the period around announcement, which brought value to ordinary investors. And in the accounting study approach, we found that the financial performance of listed companies has changed for better and outperforms the average level. Although there exits some difference between two groups of sampling companies, it generally supported our argument.While accepting the argument, we still pointed out the potential problems brought about by the foreign strategic shareholder and provided our suggestions in terms of national economy; sector policy; antitrust regulation and information disclosure procedures in our stock market.