Research On Cross Shareholding And Operation Performance In Listed Companies

Cross shareholding of companies appeared in the western developed countries first in the middle of the 20th century. Company laws regulate it with different patterns in accordance with their own countries' circumstances. Comparatively speaking, cross shareholding of company is a fresh research topic in our country. It is a new thing in China because of the short history of our modern company system. In recent years, as the development of the Chinese economic reform, many companies are engaged in it. And the society pays much attention to it. In order to present some guidance to China's enterprises reform to ensure its correct direction, it is of great importance to analyzes the issues of the cross shareholding theoretically. And, the theoretical study to the issues of the cross shareholding also has great significance to the development of the firm theory and the industry organization theory.The study in this paper is a theory and demonstration review of the cross shareholding. According to the date of the listed companies in china, it analyzes the cross shareholding's effects to the working performance from. There are six parts in this paper. The first part is an introduction to this paper, which includes three issues: the significance of the analysis in this paper, the analysis tools and methods used in this paper, and the new idea of study. The second part is an all-around of literature of the cross shareholding. The third part is an introduction to the cross shareholding. In this part, this paper gives the definition and the classification of the cross shareholding, the development in china, and introduces some other causations. The fourth part is an academic analysis of the cross shareholding's influence. It analyzes the influence of cross shareholding to the working performance in the listed companies, such as the debt paying ability, capacity to earn profits and so on. The fifths part is a demonstration of the listed companies. First, it is a research design, including building the hypothesis, selecting the samples and the samples under control. Second, it checks up the results of the demonstration and explains the distinctness to the theory under Chinese background. At last it is a brief conclusion of the whole paper. The results show that there is a marked difference between cross shareholding of companies and uncross shareholding of companies. The operation performance of cross shareholding company is better than others.