The Impact Of Equity Transfer On The Performance Of Listed Company In China

Combining with the theory and empirical studies, the papper gets the impact of equity transfer have on performance of the listed company from different aspects.The theoretical part difines the concept, research scope, methods of performance evaluation, and other related concepts. The empirical part using the methods of event study and financial analysis to analyse the proposition: first, it studies the impact equity transfer have on the market performance and financial performance of listed companies. Second, it divides the thansferee into state-owned enterprises and non-state-owned enterprises, and studies the influence equity transfer brought to them respectively. Third, it divides the way of equity transfer into paid and free of charge, studies the influence differrent ways have on financial performance and market performance of listed companies respectively.The empirical results show that, first, the stock market have a positive reaction on equity transfer matters, and paid transfer acts better than free way, equity transfer to state-owned enterprises have better reaction than to non-state-owned enterprises, and most of the excess returns abtained before the announcement of equity transfer. Second, in general, since the compeletion of equity transfer, the financial performance of listed compony improved rapidly on current year and first year, but then dropped rapidly. Last, in the long run, equity transfer to non-state-owned enterprises have better financial effect than to state-owned enterprise, and paid way acts better than free way.In the end, the papper puts forward policy suggestions according to the study,including perfecting law and regulation systems, strengthening supervision, reducing government intervention,and so on, to help government, securites regulators, listed companies and investors to make decisions.