Study On The Difference Of Upstream And Downstream Industry Listed Companies Performance And Distribution In China

In the economic restructuring, China's market organizational structure of the coexistence of a bipolar pattern(there are two market structures :One is a very special monopoly of the upstream industry, and the other is a functioning market economy spontaneously formed in the competitiveness of downstream industries. The monopoly will bring excess profits, and competition tends to be social enterprises only average profit According to most scholars view, the stronger the profitability of the company for the distribution of more profit, the company paid the greater the possibility of dividend, the dividend paid to shareholders will be more, then upstream industries should be the most investment value industry. However, according to Marxist politics and economics, and economics in the West "equal access to capital equal remuneration" point of view, the investment value of the two industries should be the same. Both views are contradictory.In order to provide a clear direction for enterprise reform policies and investor decision-making, the time data is coming from papers 1996 -2007 the two industries listed company's financial data , included of the net rate of return on investment, earnings per share ,net assets per share profit growth, growth equity, retained earnings ratio, dividend payment ratio ,found that Management achievements is different but Appropriation of profit is same for the listed company in the two industries . At the same time, two types of industries operating performance of the payment of dividends on the relevance and impact mechanisms are different, the influence of upstream industries the company's operating performance to the related dividend payment is less than that of the effects of downstream industries. Two kinds of industry's appropriation of profit's influence mechanism is different, the downstream industry's dividend payment has the rigidity; Thus further explained in the real diagnosis angle why two kinds of industries do manage the achievements existence difference, but the appropriation of profit does not have the difference. The upstream industry's fluctuation's scope must be bigger than the downstream industry the margin of fluctuation: Upstream industry's profit ability and the growth potential respectively make the adjustment by 1.76 and 0.73 proportion to the dividend payment, downstream industry profit ability and the growth potential respectively make the adjustment by 0.74 and 0.63 proportion to the dividend payment, the congenial space is very big, explained from the real diagnosis angle why the investor does invest the upstream industry by chance. Empirical perspective to further explain why the two industries operating performance differences exist differences in the distribution of profits. Fluctuations in upstream industries is greater than the rate of the fluctuation in the downstream industries: upstream industry profitability and growth to 1.76 and 0.73 respectively, the ratio of dividends paid to adjust the profitability of the downstream industries and growth of 0.74 and 0.63 respectively to the ratio of dividend payment adjustments, speculative space considerably, from the perspective of evidence to explain why investors preferred investment in the upstream industry.Overall speaking, At present China's stock market in a pattern above the deep-seated reason is that China's economic system reform is not complete, the market system is not perfect, there are some profit groups opposed to the fruits of economic reform, and the expense of the interests of medium and small investors phenomenon. Our country economic restructuring needs the further deepening, the stock market needs the further consummation, the capital market true display service economy construction function, and the general investors can share the economic development the achievement.