The Split Share Structure Reform A Number Of Financial Issues,

This paper have some research on the financial problems of theundergoing equity structure reform.Consideration was the core ingredient of the equity structure reform. Inthis paper, the theoretical basis of the consideration was discussed, basiccalculation principles of the consideration and the ways of considerationpayment. Besides that, this paper also focus on these important factors thathave impact on the consideration payment. There were four factors: the first, proportion of the non-tradable share;the second, the choosing of the calculation formulas;the third, the effects ofthe non-tradable shareholders, the forth, the profit prospect of the listedcompanies. According to my data analysis, the proportion of the non-tradablehad a linear relationship with the consideration. With a high proportion ofnon-tradable share, the payment would be higher. There were several ways tocalculate the consideration. Different ways needed different parameters, thedifferent parameters just like the P/E ratio, P/A ratio and the NPV, wouldresult different corporation value, this would at last effect the consideration.Non-tradable shareholders had very important influence on the whole reform.The communication between the non-tradable and tradable shareholderswould affect the last consideration and the success of the reform. The last butnot least, the profit prospect of the listed companies would give the investorsmore confidence to holding theirs shares, this was also important for thereform.Basing on the analysis of the reform and the consideration, there aresome conclusions and suggestions about the next step of the reform and listedcompanies' financial improve after the reform.