The Overall Listing Of Motivation And Performance

Due to historical reasons, there are a considerable part of the listed companies spin off a relative profitable asset in order to satisfy the IPO qualifications in China. This kind of action brought some benefit to new starting Chinese market; however, it also left potential drawbacks of the operations and corporate governance for the listed companies. Holistic listing could eliminate the horizontal competition and decrease the transactions of related parties. As a result, in order to solve the potential drawbacks left by IPO, the Chinese government make policies to encourage holistic listing. By now, holistic listing is a hot topic in Chinese capital market.Because holistic listing is a quite new concept, there is quite a few sample can used for the research. In academia, researchers can only study the holistic listing by case study and theory construction, they focused on how the holding company to carry out the holistic listing, or case study the benefit brought by a certain company carry out the holistic listing. Relatively, there are few empirical studies of holistic listing, especially on incentive and consequent for holistic listings. What are the incentives making listed companies carry out holistic listing and what consequents can holistic listing bring to the listed company? The answers could help us understand the incentives and consequents behind the holistic listing, and also can shed lights on the listed companies that have not carried out the holistic listing and also investors, regulators.The paper studies the incentives and consequents of holistic listing by theory construction and empirical studies. The paper reviews situations of the holistic listing in China by now, and also reviews the studies of the incentives and consequents brought by holistic listing by now. Based on it, the paper analyzes the incentives and consequents, bring up three hypothesizes, which are the companies trapped by horizontal competition tend to choose holist listing; the larger amount of tractions by related parties the more likely the company carries out holistic listing; the more concentrate the controlling right, the more likely the company carries out holistic listing. Moreover, the paper study the consequents of holistic listing and bring up the fourth hypothesis that holistic listing can improve the listed company’s stock performance.In order the test the four hypothesizes, the paper construct the sample of holist listing companies from Jan1,2003to Dec1,2011. And the paper extend the sample by choose the pair companies by the industry and company size. Base the sample, the paper test the hypothesizes by the empirical studies of the event study algorithm and accounting performance.From the results of studies, the paper finds companies, which choose to holist list, commonly have four characters that the problems of horizontal competitions and related transitions, concentrated controlling rights. From the characters, the paper conclude the incentives for companies choose to holistic listing, which is solving the problems of horizontal competitions and related transitions, improving the independence of operations and assets for listed companies, holistic listings are accept by investor for the higher market and accounting performance caused by it. Through the empirical study of the paper, it could help to understand the incentives of the companies choose to holistic list and the effect for the listed company’s performance brought by holistic listing.