Study On The Performance Of Cross-shareholdings Of Listed Companies

The development of Cross-shareholdings in our country originated from the early90's,20th century. Especially In recent years, with the increasing complexity of shareholding structure of modern companies, cross-shareholdings as the methods of capital operation and expansion, increasing frequently appear in our economic life. The new corporation accounting standard issued in2007and implementation of the share split reform, which will change the valuation of equity investment, and will bring the opportunity of revaluation on the assets of listed companies. Therefore, the research of corporate behavior of cross-holdings is extremely important.The research object of this paper is to find the effect of cross-shareholding ratio on enterprise performance so that this paper designs a model of performance value. The model carries out regression analysis separately, from the whole sample and sub-samples with different economic nature of enterprise, with enterprise performance as the dependent variable and cross-shareholding ratio as the independent variables. This paper choose Tobin's Q,ROA,CROA as the performance in order to research the impact of cross-holdings on enterprise value from different perspective.This paper selects185A-share listed companies as research sample in Shanghai stock market and Shenzhen stock market, which is in cross-shareholding situation, and collects cross-shareholding ratio value data, and other relevant financial data from2007to2009. Based on the theoretical analysis of cross-shareholding, this paper proposes assumptions corresponding to the models above, and draw conclusions through data analysis.The results show that the cross-shareholdings have a positive influence on the listed company performance, a high proportion of cross-shareholdings of the company has better performance level. In addition, the cross-shareholdings of state-owned enterprise has higher positive influence on performance than non-state-owned enterprises. Therefore, this paper concluded that cross-shareholdings can improve performance. Finally, this paper suggested that we should establish the complete system and database of cross-shareholdings to provide accurate information for Government Regulation.