The Influence Of Split Share Structure Reform On The Performance Of Chinese Listed Companies

There is a dispute about the effect of the split share structure reform in the market during almost three years'implement of it. As the reform of China's split share structure unveil, the following discussion, with development trend of current theories in mind and based on historic research, and employing the equity structure as the connecting point, mainly focuses on the analysis of the internal relations between the equity structure and performance of the listed companies, will study in depth the potential impact of the Reform over performance of the listed companies in order to provide objective and authentic basis for the evaluation of the reform of split share structure.For a single financial index can't exactly describe the performance of listed companies because of the diversification of performance, so when selecting the index of performance, the author adopt eight financial indexes which represent the performance level containing profitability, solvency, assets management level, growth ability these four aspects. First of all, the thesis makes trend analysis on the performances of the same listed companies both before and after the reform, and the analysis result shows that the rate of return on total assets in 2006 declined compare to that of 2005. Then in order to test and verify whether the decline in the performances due to the split share structure reform, the paper takes the rate of return on total assets as explanatory variable, and introduces some influential correlated variables such as asset-liability ratio, company size, growth ability and so on, meanwhile the thesis adopts regression analysis to compare the data between enterprises under reform and those without reform in the same year, the positive result tells that the reform of split share structure is beneficial to the performance of listed companies. In addition, the result shows that asset-liability ratio and the holding proportion of the first big shareholder have negative correlation and inverted U relations with the performance of listed companies respectively, furthermore, the paper deduced the proper holding proportion of the first big shareholder. Finally, based on the explanation and analysis of positive result, the author offers some relevant proposals to the improvement of performance of listed companies including internal corporate governance and external supervision and so on.In a word, this thesis is a systematic research on the performance of listed companies since the reform of split share structure in 2005, the paper covered many aspects of management and operation, and therefore contributes a lot to the research on the relationship between equity structure and performance of listed companies. The conclusion of this paper provides objective and authentic basis for the evaluation of the reform of split share structure, meanwhile it offers reference to the relevant policy-makers for decision-making, rules and regulation systems and therefore improves the operational mechanism of stock market in China, and promotes the development of listed companies and securities market in China.