Based On The Analysis Of Relational Financing Enterprise Shareholding Banks Value

To be the shareholders of the commercial banks is a popular phenomenon of the A-share market in recent years. It is generally believed that the listed companies to be the shareholders of the commercial banks for three purposes:diversified investments, stock dividends and capital appreciation. This article attempts to departure from the deeper reasons of relational financing to verify the excess value of bank shares to these listed companies through the way of adjusting the short-term capital structure.The article firstly introduces the theory situation of relational financing, capital restructuring and company valuation. And then verify that the A-share market listed companies holding commercial bank shares have access to their short-term capital structure adjustment. We found that small and medium capitalization companies are more vulnerable to the impact of holding commercial bank shares to the impact of their short-term capital adjustment. Comparing large cap companies holding commercial bank shares, small and medium capitalization companies tends to be gentle to adjust their short-term capital structure.On the other hand, we found that the A-share market listed companies in short-term capital structure adjustment are mainly impacted by the ability of the company pledged at the operational level, but with little relationship with the profitability of the company, history, growth. In addition, in the inspection of our sub-sector, we found that the listed manufacturing companies’ adjustment of their short-term capital structure are significantly impacted by weather holding commercial bank shares, and this is the characteristic of the manufacturing industry. However, to the monopoly industry and asset-light industry this effect is much lighter.Next, we examine the impact of the short-term recapitalization of the relational financing to the company’s excess value. We found that in the A-share market holding commercial bank shares will add company’s excess value. This value increase is through the increasing of available cash flow to the relational financing. At the same time, we found that, for small and medium capitalization companies, the increasing of the excess value is bigger than the large capitalization companies.Finally, we give our advice from two aspects of the company and policy. We recommend that listed companies actively involved in the bank-enterprise cooperation, In particular, to establishing a good working relationship with local financial enterprises. On the policy side, we recommend that the regulators to foster private finance from the ground toward the sun, and to develop the bond financing market.