An Analysis On The Performance Of Overall Listing On State Owned Enterprises

In the initial stage of the establishment of China’s capital market,due to the restriction on the capacity of the capital market,the regulatory agencies adopted a combination of the approval system and the quota system for the listing of enterprises,which led some companies especially state-listed companies,to split some of their high-quality assets into listings in order to meet regulatory authorities for the scale of listed assets and corporate profitability requirements.However,as time goes on and the securities market develops continuously,the disadvantages of the spin-off listing had emerged gradually.On the one hand,the scope of business of the group is similar to that of the listed company,which is easy to cause competition thereby reducing the internal efficiency of resource allocation of the group.On the other hand,the close relationship between the group and the listed company results in some problems like the existence of a large number of related transactions,breach of guarantees by the listed company and funds occupation by controlling shareholders.The existence of the aforementioned drawbacks has severely damaged the interests of small and medium-sized shareholders,and has also seriously affected the steady and continuous development of listed companies and capital markets.The rapid wave of the overall listing of state-owned enterprises began at the end of 2006.There are two basic reasons for this wave:First,the arrival of the post-equity division era makes it possible for the shares held by the major shareholders of listed companies to normally circulate and realize liquidity.Consistent with the interests of small and medium shareholders,major shareholders have the incentive to integrate unlisted assets into listed companies.Second,the State Council,SASAC and other departments have repeatedly emphasized the importance of the overall listing of state-owned enterprises at the policy level.In recent years,more and more companies or groups have achieved overall listing through many methods such as private placement,share swap absorption and merger.Then,from a short-term perspective,what impact will the overall listing have on the performance of listed companies?What kind of market reaction will the capital market have for listed companies going public?After achieving the overall listing,will the listed company’s financial performance be improved?Answering these questions will help us to analyze and explore in depth the motives of state-owned enterprises in the automotive industry to implement overall listing from a theoretical perspective.lt is also possible to provide empirical evidence for the successful implementation of the overall listing of state-owned enterprises through in-depth analysis of changes in the overall performance of the listed companies.At the same time,it provides practical basis for regulators to formulate standards or relevant rules and regulations concerning overall listing.This paper combines normative research with case study and explores the core issue of"the impact of overall listing on corporate performance." Firstly,after reviewing a large amount of literature,this article reviews and summarizes related research on the overall listing of listed companies,and then uses signal transmission theory,synergy theory,enterprise boundary theory,and economies of scale theory to analyze the impact of overall listing on the listed company’s performance.Secondly,from the perspective of external environment and internal governance,this paper analyzes the motivation of JAC to implement overall listing,and believes that obtaining scale effect,improving corporate governance and earning more profits are the essential motives for JAC Group to implement overall listing.When analyzing the impact of overall listing on the market performance of case companies,the paper first used the event research method to investigate the response of the JAC Group’s overall listing event in the capital market.This study discovers that the result of overall listing is dramatic,which is particularly reflected in its ability to promote performance.The dissertation farther adopted the financial indicator analysis method to select key financial indicators such as ROE,inventory turnover rate,asset-liability ratio,and net profit growth rate,and used longitudinal and horizontal comparative analysis methods to calculate and study the financial performance of case company before and after the overall market implementation.The results show that the overall listing of the group has improved the financial performance of the case company.After the overall listing of JAC Group,the listed company’s profitability,operating capacity,and solvency have all been significantly improved.Some of these improvements have occurred in the entire year of overall listing and some have reflected after the overall listing is completed.Judging from the development capabilities,the overall growth of JAC after the listing has improved and its development capability has been enhanced.Overall,the overall listing has brought about positive impact on corporate performance,and there are two main paths of influence:First,the group’s overall listing plan as a signal to the relevant investors in the capital market,when investors are optimistic about the overall prospect of the listed companies,the listed companies’ stock prices will fluctuate drastically,then the stock’s yield will show a positive upward trend,and the overall market performance will be good:Second,Second,the overall listing of the group expands the scope of business of the original listed company,which allows the company’s external borders to expand outwards.The original related transactions between the group and the listed company translate into normal production and business activities within the group,whidh reduce the problem tihat major shareholders infringe the interests of small and medium shareholders.In turn,compaPies can centralize their core resources,maximize their synergies,enhance their ability to manage their business,and enhance their financial performance.Based on the foregoing case study of JAC?this article draws the following two implications:(l)Enter:prises should seize the opportunity of overall listing to promote the sustainable development of the company;(2)Regulatory agencies should formulate and improve the overall listing standards of listed companies.