The Split Share Structure, Resource Allocation And Performance Of Listed Companies

Split share structure, which started in the early period of 1990s, played a positive role in solving capital shortage problems of state-owned companies. But as a institutional defect of history and particular structural problem in China capital market, it made the stock market lost many functions, and hindered its progress severely. Since the middle period of 1990s, from transferred allotted shares to state-owned shares allotment and then state-owned shares reduction, the government had launched several proposals. However, all of them ignored the market bearing capacity and tradable shareholders'interest, violated the market rule and finally failed.On Apr.29th 2005, China Securities Regulatory Commission issued Notification about listed company split share structure reform pilot which meant the launch of this reform and a great historic transformation in capital market. The society expected the reform could accelerate the healthy development of capital market, CSRC also believed the reform had basically completed and capital market had been changed dramatically.Undoubtedly, after about 5 years of split share structure reform, the stock market effect upgraded remarkably which indicated reform energized the stock market. Although did this reform receive the expected effect and what did it really mean to state-owned as well as private enterprise. The paper tried to figure it out in economic model, found the basis for reform theoretically and effect practically.Split share structure reform is achieved by boosting full circulation, optimizing listed company'share structure, so as to improving the performance. The paper used normative research and positive analysis, analyzed the reform's influence to resource allocation and governance performance. Firstly, the paper referred a great number of information about split share structure reform and governance performance, combined theory with practice, integrated normative research with positive analysis in research.Secondly, in the core part of the paper, historical method is used. The paper took equity evolution of full circulation as example, analyzed the enterprise's behavior from the perspective of full circulation, and offered the reference for split share structure reform. Case study is also used. By analyzing typical case of reform, the paper found its significance to economic and enterprise reform. The logical deduction and positive analysis are used too. The paper deduced corporate growth model and then the model in reform from analyzing American capital market, observed the reform result in the basis of data. Finally, by the typical case of reform and corporate efficiency, the paper confirmed the existence of previous model, proved further more that split share structure had a big impact on listed company's operating costs and efficiency.In conclusion, the paper made a systematic research on company performance after split share structure reform, involving management issue in many ways. The conclusion is conducive to judge this reform objectively, and offered reliable support to seek the best ownership pattern, improve governess efficiency etc, and expected to draw up more related policies, perfected stock market's operating mechanism, contributed to healthy development securities market and listed company.