The Research On Market Performance With Corporate Control Transferring Of Chinese Listed Companies

Corporate control transfer of the listed companies is one kind of enterprise mergers andacquisitions. The process of control right transferring is that different interested stakeholders competingwith each other for the right of corporate resources management. Along with the corporate control marketgradually being formed, which is effective and using unified pricing standard,events of corporate controltransfer in Chinese listed company will occur frequently. Transfer of control has become an important wayfor a listed company to expand and realize its stragegic target. Therefore, no matter for the controllingshareholders, listed company’s managements, or for the securities regulatory authorities, the study on thecorporate control transfer has great theoretical and practical significance. The controlling rights are notonly the focus, but also the guarantee of company management of standardization.The issue of controllingrights is crucial factor of the enterprise’s development,and the bridge between microcosmic enterprisemanagement and macrocopically innovation of capital marketing as well. As a scarce resource, the processof the transfer of controlling rights is actually reconfiguring its resources. For the evaluation of theefficiency of the transfer of controlling rights, which mainly to see whether the re-configuration ofresources to enhance the company’s performance and value.In the better-rounded capital marketing system of the western countries, controlling rightstransmission marketing is based on the restriction of senior managers’ management activities. Surroundingthis core, a comparatively perfect transmission marketing theory comes into being.In china, with thespringing up of securities capital business, there is more and more transmission marketing events.However,under the special system characteristics of listed companies in our country, In listed companies in China’s special institutional features, however, the manifestation and function of the event of transferred ofcontrolling rights in chinese stock market.This article is based on a special background of the marketenvironment in China to study the transfer of controlling rights, the research object is the listed companieswhich transferred congtrolling rights,under the premise of the previous literature, using the normative andempirical analysis method integrately, this article looks at the changes of companies performance whichtransferred controlling rights using econometric analysis tool, in order to improve the governance of listedcompanies in China, to standardize the controlling market,to protect the small and medium-sized investorsform being abusing by the controlling shareholder.This paper uses the event study methodology,selecting a certain event window, to study theshareholders of the target company which transferred controlling rights whether gain extraordinaryearnings around the publication. If shareholders can gain abnormal return, the transferred conttrollingrights is efficiently. This paper selects the sample of the transerred controlling rights companies in2010,using CAPM model to study the market reaction of the transferred market.The results shows that thepositive effect in short period,but negative effect in long time. It suggests that the efficiency of China’sstock market is low, which has transition reaction, the share price appears to be overextended in the earlyemergence, but backing down after the information disclosure. The results also confirmed that the transferof controlling rights is short-term, blindness and speculative. Therefore, we will improve the marketinformation disclosure system and to improve the construction of legal system, to strengthen thesupervision of the market,all these are important. Finally, the paper presents the suggestions, such asestablishing a modern governance mechanism, improving the structure of corporate ownership, perfectingand learning foreign advanced esprience of mergers and acquistions. At last, given the outlook for the future research direction, we can study the changes of long-term performance, the motives formstakeholders and the stakeholder perspective of the controlling rights transmission.