The Influence Of Non-tradable Shares Reform On The Performance Of Listed Companies

Non-tradable shares reform of China is an important institutional change in the securities market. In recent years, the effect of the reform has been the focus of attention. In this paper, the author, based on the ownership structure and comprehensive performance of listed companies, systematically studies the changes of comprehensive performance of listed companies with the theories of performance evaluation and modern enterprise. In order to complete this study, the author uses some standardized analysis methods and some empirical analysis methods.In the aspect of performance analysis, to comprehensively assess the performance of the listed companies, the author selects 8 financial indicators from the four aspects of profit-gaining capability, liability capability, asset operation capability and growth capability of the listed companies, and applies the main component analysis method to compute and compare the comprehensive performance of the sample company from 2004 to 2008. The results indicate that the comprehensive performance of the sample company has no obvious difference before and after the reform. To further reveal the relationship between the reform and the performance of the listed companies, the author takes the comprehensive performance as explained variable, selects different ownership structure and concentration as explanatory variables, introduces relevant controlling variance such as company scale,entrepreneur incentives and so on. Then uses regression test to the data of the sample company before and after the reform. The result indicates that the reform has different influence between different ownership and comprehensive performance. At the same time, the relatively high concentration and low degree of check-and-balance is the most beneficial to the comprehensive performance of the listed companies.In addition, the author puts forward the policy suggestions according to the empirical analysis results:First,The way of state-owned shares reducing. In view of that influence of state-owned shares on performance has two sides, The reducing of the state-owned shares should not be a progressive change, but rather a one-time exit when conditions are ripe. If the conditions are not ripe we should consider accumulating shares. Second, strive to foster qualified corporate shareholders. Third, actively introduce institutional investors.