Research On China’s State-owned Company’s Financial Situation After Listing H-Shares

The financial status of the listed company has been one of the hottest topics in academic circles. And this paper came across a very interesting phenomenon in capital market, namely the state-owned capital holding company’financial status would display a downtrend after the initial public offering. What causes the performance of the downtrend, by accident or inevitable? How deep was the influence? The paper then decided to make a systematic analysis and research on this phenomenon through the sample research, hoping to get a universal conclusion.The paper uses the financial data to compare the enterprise’s, especially Chinese mainland state-owned capital holding company’s financial conditions and operating performance before and after listed in Hong Kong. Through the case study, we found that owing to the negative effect of IPO, the state-owned company’s financial situation deteriorated after listing in Hong Kong. Then we verified it through a further empirical research and their conclusion is consistent.The paper is divided into six chapters, and the main contents are summarized as follows:The first chapter is an introduction, which briefly introduces the background, the meaning and the research method, making a plan for the research below.The second chapter is a literature review, combing and summarizing scholars’ point of view about the IPO effect on listed companies. Through analyzing, we found that some scholars insisted on positive views, namely thinking listings will improve enterprise’s financial situation and corporate governance, etc.; and also some scholars argued that a few years after the listing, the company’s financial status will deteriorate. According to the opposite ideas, this article made a classification and statements.Chapter three is the theoretical analysis. This chapter defined and made a fundamental explanation about the important concepts and basic theory mentioned, such as the principal-agent theory, corporate governance theory, earnings management theory and the MM theory.The fourth chapter is case study. Through the financial statements analysis and profitability, solvency, operation ability analysis with regard to the Yan Zhou coal mining company, it is concluded that financial situation was worse. This conclusion needs to be further proved by empirical study.Chapter five is empirical research. It states the sample data, model, and the research process, and lead to a conclusion consistent with the case analysis.The sixth chapter is conclusions and policy suggestions. Aimed at the conclusion of this study, some feasible suggestions are proposed.The main contribution of this study is:The very first to put forward that China’s state-owned capital holding company’s financial situation will experience a downtrend after H-share listing.