Listed Companies In JiLin Province: The Existing Problems And The Substantial Evidence

In August 1993, the first listed company of Jilin Province- Changchun Northeast China Hualian Group Incorporated went public, indicating that the transformation in line with stock system in JiLin province began. However, in less than 11 years, it was removed from Shanghai Stock Exchange due to loss-making. So far, after 14 year's development, there are 32 A-share listed companies in Jilin. It should be noted that the present condition are not only the smaller listed company number but also the business performance gap is large in comparison with the average level in China. Currently, the total number and structure of the listed companies in JiLin Province don't adapt to the development of old northeast industrial base; in addition, they also don't promote the leading industries in JiLin.Nowadays, much attention has been paid on how to make the listed companies in Jilin achieve better development. Based on this background, in this paper, on one hand, we aimed to find out the existing problems and their underlying causes of the listed companies in JiLin Province from the enterprise capital structure, shareholding structure and corporate governance structure theory combined with China's national conditions and national revitalization of the old northeast industrial bases. On the other hand, we perform a series of systematic and thorough investigations on the listed companies in Jilin from their time-to-market, numbers, industrial and geographical distribution, capital structure and the financial situation. It was found that the exiting problems are as follows: first, regional economic development issues, including the overall structure is not balanced, the rate of expansion slows down year after year; Second, stock equity structure is irrational; Third, the corporate governance structure, including major shareholders are against the interests of small shareholders, the directorate can't play a very good role; Fourth, listed companies polarization is very serious; Fifth, the fund-raising channels are narrow and the cultivation of market subject is slow.Finally, we hope to bring forward countermeasures and suggestions of improving the performance of listed companies and discuss how to promote the development of regional economy by the organizational form of listed companies to afford theoretical bases and reference role for their future development. It's expanded from the following: (1) deepening the resource allocation function of the securities market (2) promoting the readjustment of the industrial structure of listed companies (3) adjusting the listed company's distribution in the region and the industrial structure reasonably (4) issuing the local government investment in infrastructure bonds (5)establishing and perfecting the manager market (6)founding the venture capital fund to promote small and medium enterprises, high-tech technology companies listing on the Growth Enterprise Market (7) improving the listed companies' competitive power in Jilin (8)strengthening the management of the collecting funds and improving the efficiency of the funds (9) improving the performances of listed companies.