A Case Study On Market Value Management In Tianqi Lithium Corporation

Most of the management experience in Chinese capital market derives from western capital markets.Under the guidance of value management,listed companies take the maximization of corporate value as their strategic goal.However,with the implementation of the equity division reform in China,the equity of the listed company entered the era of full circulation,and the new problems of listed company also follows.One of the problems is the deviation between the intrinsic value and the market value of the company.Value management emphasizes the enhancement of intrinsic value of the company.In the western capital markets,market value will match the intrinsic value of the company,but in Chinese capital market,this mechanism will face its failure.Therefore,on the basis of value management,Chinese scholars propose the concept of market value management in a profound perspective,in other to transfer the intrinsic value created by value management to the market completely and form the external value that is unified with the intrinsic value,namely the market value.Whether the market value management of listed companies in China has achieved the expected results and how are they managed will be the focus of this thesis.First of all,taking theoretical research as the starting point,we sum up the relevant theories of market value management and the research achievements of domestic and foreign scholars.Secondly,taking Tianqi Lithium Corporation as the case study object,the basic situation of the company and the reasons of choosing it as the case company are briefly explained.Afterwards,using event research method,EVA method and financial index analysis method,the capital operation methods such as mergers and acquisitions,transfer and equity incentives implemented by Tianqi Lithium Corporation since its listing are analyzed,and these capital operation methods promote the realization of value management in the market value management.Among them,a detailed analysis of the Tianqi Lithium Corporation stock price,stock excess return rate,changes in market value before and after mergers and acquisitions is presented,as well as the key points of enterprise valuation based on the EVA method,is used to analyze the short-term and long-term value added of Tianqi Lithium Corporation.For delivery,it mainly analyzes the motivation of the transfer,as well as the effect of the announcement effect and the ex-rights effect on the stock price and the market value.In the equity incentive,it mainly analyzes the effect of the announcement and the promotion of value creation.Again,combining the compare between the performance and the market value of Tianqi Lithium Corporation since listing,and use the evaluation index of market value management performance of market value management research center to make a comprehensive evaluation to the the results of the management of the market value of the Tianqi Lithium Corporation.Finally,a case study revelation is achieved by the above study.Through the study of Tianqi Lithium Corporation’s market value management case,it is possible to summarize the elements for Tianqi Lithium Corporation’s success in market value management and provide successful experience for the same industries.And in the research of the thesis,the application of market value management performance evaluation to a single listed company provides a brand new way for many companies to have a self-examine market value management.