Research About Cross-shareholding Effects On The Profitability Of The Listing Corporation

Cross-shareholding originated in Japan in the nineteen fifties, but cross ownership of our country produce in later nearly half a century than Japan, but with its development in China of the securities it plays a more and more important role. In2012, the first quarter report which is displayed by the listing Corporation shows the cross shareholding in the listing Corporation, Only the financial and insurance industry’s7listing Corporations, changes in fair value gains and losses up to-29.60billion RMB in2011. SO, effect of cross holding listing Corporation on their profitability cannot be neglected.After reviewed the related theories of the cross shareholding in this paper, sorting according to the Shanghai and Shenzhen Stock Exchange1437listing Corporations disclosure of the2011Annual Report and2012Quarterly Report,239of the cross shareholding listing Corporation were obtained. Through further screening of then, getting59of the cross shareholding listing Corporations as the sample data. This text take the sample data as samples to establish model to make empirical analysis, in order to further analyze the influence on cross shareholding proportion of listing Corporation profitability, in this text I divided the total sample into two sub samples according to the proportion of the size to make empirical analysis.According to the usual practice of listing Corporation in practice,in this paper I select the Return on equity(referred to as ROE), the Return on total assets(referred to as ROTA), the Main business profit margins(referred to as MBPA), cost profit margins (referred to as the RPC), Earnings per share(referred to as EPS) and Undistributed profit per share(referred to as UPPS) of these six indicators as the main explanations to calculate profit ability score factor, by calculating the data represent the company to profitability. In view of the profitability of six indicators, when analysis the influence of cross shareholding to the listing Corporation profitability, make the cross holding as a model strain, these six indicators as control variables model. We can analyze the influence degree of cross shareholding further on the profitability model by the six control variables.