Research On Market Value Management Of Chinese E-commerce Companies That Making IPO Overseas

Chinese e-commerce business boom while creating a lot of employment opportunities since 2009.But Chinese e-commerce enterprises have difficulties raising money in the mainland.Thus a big part of them turn to foreign security market. For these companies, market value management is essential for improving company image, marketing and refinancing. But they don’t do well in the field now. So it’s necessary to have a study in the problems and causes of market value management for Chinese e-commerce enterprises.This paper take Alibaba Group as an example. Except exordium, it was organized by three parts using event study and comparative analysis. Firstly, this paper introduced Alibaba’s development of business and market value performance. Then this paper discussed the significance of market value management for Chinese e-commerce enterprises that make IPO overseas and introduced market value management measures, problems and causes of Alibaba Group. This paper showed four main market value management measures taken by Alibaba Group and came up with four problems from outside of the company to the inside: insufficiency of official announcement, improper time of announcement, improper measures of stakeholder relationship, high cost of share-based compensation. Event study and comparative analysis were used to analyze the impact for market value of the above problems. Accordingly, this paper explained the reasons of the above problems from outside of the company to the inside based on three aspects: information disclosure, time of official announcement and share-based compensation. Finally, this paper concluded four recommendations form Alibaba Group:improve the response mechanism between company and stakeholders, emphasize value realization, control the cost of share-based compensation and take good use of VIE.