Analysis On Financial Results With Control Right Transferring In Chinese Listed Companies

Along with the unceasing consummation and the development of the capital market in our country ,Control right transferring has become important behavior of listed companies in China. Has the process of control right transferring improved the management ability and performance of these listed companies? It is a hot problem which demanding urgently to be studied.This paper studies 112 control right transferring events happened during January 1, 2003 to December 30, 2005 in China. Firstly, we summarize and retrospect the methods used in M&A studies and the newly achievement in this area both at home and abroad. Then, under our country's special capital market background we study the short-term and long-term performance empirically. Main results are following:1. Event study has been used to verify the short-term (60 bargain days before and after control right transferring announcement) performance and we found shareholders obtain statistically significant positive accumulative abnormal return (CAR). We also found performance of the listed companies which had acquired free control right transferring or took merger in same industry is better than those have paid or those have experience conglomerate merger. But there is no significant difference between the accumulative abnormal of listed companies which has been charged by state or other else.2. Financial indexes have been used to verify the long-term (2 years before and after control right transferring) performance and we found shareholders obtain positive wealth which is no statistically significant. We also found there is no significant difference between subsamples.3. There are no significant correlations between Short-term and long-term performance for the listed companies with the process of Control right transferring.