Research On The Perfornmicc Of Cross-shareholdings Of Listed Companies

Cross-shareholdings are the mutual investment behaviors between companies or legal persons. Inour country, the cross-shareholdings originated from1990’s, since1998, from then on, more andmore listed companies chose cross-shareholdings for the purpose of corporate governance,surplus management etc. But the double effects of Cross-shareholdings in the stock markettriggered attentions of more and more people. On the one hand, in the bull market,cross-shareholdings can help the listed company continuously create wealth myths, on the otherhand, in a bear market cross-shareholdings accelerate the falling of share prices.Cross-shareholdings are the common technique of capital operation for the company, and also amean of development for the company to expansion. It is increasing frequently appear in oureconomic life, at present it is common, but because the cross-shareholdings in China appears late,theories and practices of cross-shareholdings are still not enough, the existing literature ofcross-shareholdings are mainly in theory, such as the motives, accounting measurements, thecompany financial characteristics, the distribution of the profits in the consolidated financialstatement of cross-shareholdings. The empirical research of cross-shareholdings and theeconomic consequences of cross-shareholdings are less. This paper will use both qualitativeanalysis and quantitative analysis, and both statistics and econometric method to explorecross-shareholdings behavior of listed companies in China. It would be of great important to thetheoretical and practical significance influence on enterprise performance and the capital marketsand listed companies.This paper studies found that operating performance of cross-shareholdings of listed companywith the uncross-shareholdings of listed companies have significant differences, and to a certainextent the performance of cross-shareholdings of listed company is better thanuncross-shareholdings. Cross-shareholdings is positively correlated with enterprise performance,Cross-shareholdings has ascending function to the listed company.