Cross-shareholdings Of Listed Companies Behavior And Enterprise Performance Correlation

Since 1997 Liaoning Chengda shares withGF Securities, the emergence of this event opened a new chapter in cross-shareholdings of listed companies. With the development of economic, the phenomenon of cross-shareholdings among listed companies in emerging,its high growth has become an important strategic alliance to achieve a breakthroughin China. Influence the behavior of cross-holdings on firm performance and even become a social theory research focus.In this paper, the sample group is China’s Shanghai and Shenzhen Stock Exchanges listed companies who exist the direct cross-shareholding.By studying the motivation of cross-shareholdings, current status and use of relevant data disclosed annual reports of listed companies to obtain cross-holdings for corporate profitability, asset quality, debt risk, operational growth have different impacts, and propose targeted suggests based on findings recommendations.This paper reviews the literature and learn about cross-ownership and corporate performance-related effects, combined with the characteristics of China’s Shanghai and Shenzhen market, qualitative analysis of the theoretical basis of the current cross-shareholdings among listed companies in China to produce the relevant strategies and motivation law Standard; Set Shanghai and Shenzhen between three direct cross-shareholdings of listed companies2012-2014 as the sample group, and find the same industry does not exist under the same asset size of cross-shareholdings of listed companies as a control group.By comparing the sample group of companies and the control group differences in company profitability, asset quality, debt risk, operational growth and other aspects,examine whether they can Wilcoxon test, and then empirical analysis with establish multiple linear regression model.Research indicates:the existence of cross shareholdings conduct among listed companies act on firm performance is positive, and have different effects for different aspects of the business profitability,asset quality, debt risk, operational growthperformance, etc. Finally, according to the results of empirical analysis, proposing norms related cross-shareholding system to encourage long-term cross-shareholdings between companies and other policy recommendations.