A Study Of Ultimate Owner And Foreign Shareholder Impact On Corporation Valuation

As Reform of National Corporation goes on, a great many of natural person enter listed corporations to be these series of corporations' ultimate owner by silence. After they directed complete collapse of listed corporations, a considerably disputed debate is widely raised on which is more efficiency, state-owned enterprises or private-owned. As the other emerging market, pyramidal ownership wildly exists in Chinese Listed Companies. Ultimate owner expropriate the rights of minority shareholders thought pyramidal ownership and damage corporations' valuation. Financial market will be entirely open, which may bring new hope to Chinese listed companies that are in a dilemma. Foreign shareholding Chinese listed companies become more and more, and also give rise to notable effect for capital market and listed companies. The problem whether the foreign shareholding can supervise ultimate and create some corporation valuation or not is attended by all the people.After reviewing of empirical studies and status quo, the ultimate owner was divided into two sorts according to their identities of ultimate ownership, company controlled by country and by private in this paper. Then choose Chinese listed companies whose shares were hold by foreign investors in 2006 as samples and related variables set up multiple linear regression models. In the regression result it was found that explaining degree of variables to corporations' valuation in private-owned companies is greater than that in state-owned companies. After finding notable variables in entire regression, the regression step by step was used to find the pertinence between variable and corporations' valuation. The result of this research was reported that the different government and supervise should be adopt in different kinds of ultimate owners, foreign shareholding can effectively rise corporations' valuation. The whole research includes five chapters, and could be divided into three parts by the contents:The first part including chapter one and two are theory foundation. After analyzing the theory and summarizing former research, the problem is put forward.The second part is chapter three. Through analysis the status quo of ultimate owner and foreign shareholding in Chinese listed companies, the praxis foundation was offered to empirical analysis.The third part includes chapter four and conclusion. After choosing data and putting forward hypothesis, the linear regression was done. And thought summarizing descriptive statistics the main results of regression, the implications has been found clearly including: perfected and strict information releasing, orderly opening stock market step by step and treating differently with state-owned and private-owned enterprises.