Studies On Wealth Effect Of Control Right Transferring About Companies On The Market

Along with the development of our stock market, domination market of the companies on the market has already formed. And the domination shift has become the important behavioral characteristic of the companies on the market. Therefore, to improve the stockholder's rights' structure of these companies, and to enhance the efficiency of the stock market operation, the research of the domination shift is extremely significant both theoretically and practically. However, the present literature about this research mainly concentrates on the two master lines: the acquisition reasons and performance, the wealth effect of the domination transition is mainly aim at the target companies .However, the occurrence of the domination transition not only effect the wealth change of the target company, but also is a multi-shareholders game to the acquired company and the wealth of the negotiable shareholders. Therefore, it is necessary to study the effect on the acquired corporations, target corporations and negotiable shareholders that thoroughly studying on the wealth effect of listed company domination transition.On the base of M&A and market for corporate control theory, this article has studied the domination shift case, the Fuxing Group's taking over on South Steel stock company. The case is the first offering acquisition case in China which occurs in the domination shift between a private enterprise and a listed company. The specific research has analyzed the influence to wealth effect to the acquired company, the targeted company and the current stock holders caused by domination shift. It can help to deepen the cognition of domination shift in capital market and regulate the conduct of domination shift. Through the establishment of wealth effect index appraised by domination shift, the article has researched the variation of wealth effect caused by domination shift by events research technique. The research findings indicate that our private enterprises tend to be in the rational regression stage in obtaining the domination market. The domination shift has brought remarkable wealth effect to acquired company, the targeted company and the current stock holders.The main content of this article includes the following parts. The first chapter is the introductory remarks about the article. It has analyzed the research background and explained the goal and the significance. It has also pointed out the innovation and limitation of this paper and showed the used research technique. The second chapter is the theory review part which has provided the theory basis for individual case's research. It has analyzed the theory of merging motive and the profitability theory of shareholders and dominations. The third chapter has introduced the basic content of domination shift and defined the related concepts. The development and characteristic of our domination market are elaborated in this chapter. The fourth chapter is the case analysis part which is the main body of the paper. Embarking from specific case, it designs a judging index called wealth effect to acquired company, targeted company and the current stockholders. Appraising the variation of wealth effect to the three parties, it has come to a conclusion that the domination shift has brought remarkable wealth effect to the three parties. The fifth chapter gives some conclusions and suggestions. Summarizing this article, it has proposed some policy suggestions on our domination shift market.