Empirical Research On Cross-shareholdings Impacting On The Performance Of Listed Companies

Cross-shareholdings,originated in Japan,is a special ownership structure of the company,which is some Japanese companies in order to resist a hostile takeover to hold an inter company shares each other.It is a extremely common mode of operation in foreign capital markets at present.In recent years,the development of cross-shareholdings among China's listed companies is also very quick.By the time of 2012,there are 2578 listed companies in Shanghai and Shenzhen Stock Exchange Market,and there are about 511 listed companies have cross-shareholdings behavior,which is accounting for 19.82 percent of the total number of the listed companies and covering almost all sectors of A-share Stock Exchange Market.cross-shareholdings of listed companies is a“double-edged sword".To protect the interests of minority shareholders and optimize capital markets,it is very important to guide and standardize the system of cross-shareholdings correctly.And business performance is a very important evaluation which is measuring whether a listed company is growing healthily.Therefore,it is essential to do the research on how a cross-shareholdings company influencing company's performance.Based on the theoretical analysis of cross-shareholdings behavior of the listed companies,the paper constructs a multiple regression model to empirical analysis combining with direct cross-shareholdings sample data from 2008 to 2012,which aims to finding the relationship between cross-shareholdings and company's performance.Meanwhile,the paper will test the robustness of the results between cross-shareholdings and company's performance.To do the further research on the effects of cross-shareholdings,the paper classify cross-shareholdings to whether the company's nature is the same and whether the financial institutions joining in,then constructs a multiple regression model to empirical analysis.The empirical results show that:firstly,the proportion of cross-shareholdings can promote company's performance.In other words,the relation between the proportion of cross-shareholdings and company's performance is positively correlated,and passed the test of significance of 0.01.Secondly,the influencing of the ratio of cross-shareholdings promoting company's performance is robust.Thirdly,at the behind of distinguish company's nature,it haven't passed the test of significance of 0.1.This indicates that it has no significant differences that cross-shareholdings of the sate-owned enterprises and cross-shareholdings of non-sate-owned enterprises promotes company's performance.Fourth,comparing with cross-shareholdings behavior without financial institutions,it is more apparent that the cross-shareholdings behavior with financial institutions promotes company's performance.In addition,according to the empirical results,the paper put up with the following policy:Firstly,encourage an appropriate increasing in the proportion of cross-shareholdings.Secondly,guide the behavior of cross-shareholdings actively.Thirdly,encourage institutional investors to participate in cross-shareholdings accelerate the diversification of equity.Fourthly,caution of fair value measurement.Fifthly,strengthen information disclosure of listed companies'cross-shareholdings.Sixthly,regulate cross-shareholding system of voting shares of a listed company.