Case Study On Market Value Management Of Zhejiang Dahua Technology Co., Ltd

Since the reform of non-tradable shares,listed companies have paid attention to market value management.Along with the release of the “New Country Nine Articles”,economic sector also clarified their attitude to encouraging listed companies to conduct market value management,which indicates the strategic significance of market value management for listed companies.On October 26,2018,the “Company Law” revised the relevant contents of the repurchased shares,and increased the provision that purchase shares can be used for the ownership of employee stock or equity incentives,etc.,so that listed companies have a legal basis for market value management.This paper mainly uses the case analysis to analyze the condition of market value management of listed companies in China,and how listed companies conduct market value management.Firstly,this paper generalizes the literature on market value management,inducts the related concepts of market value management,the research status and the research results of scholars at home and abroad.Secondly,this paper selects Dahua Co.,Ltd as the case study,which is one of the leading enterprises in the security industry,and then introduce the company's basic situation,business situation and industry situation.This paper analyzed the motivations of the market value management of listed companies such as Dahua and analyzed the company's strategy transfer,equity incentives,and market value management methods such as employee stock ownership plan since the listing of Dahua shares,combined the comparison of their performance and market value,judge whether market value management can promote Dahua Co.,Ltd to realize its company value.Thirdly,this paper used the revised market value management performance evaluation model to systematically and comprehensively evaluate the market value management results of Dahua.Finally,based on the above research,it is concluded that listed companies should implementmarket value management rationally,market value management should be far away from market manipulation,and market value management should establish the concept of "combining industry with finance",taking into account both capital market and product market.At the same time,it gives relevant suggestions that listed companies should maintain stable value creation ability,improve market competitiveness through mergers and acquisitions,and not blindly pursue the rise of stock prices.By studying the market value management of Dahua Stock,we can summarize the success of Dahua Stock in market value management,and provide experience for other listed companies in the same industry.And in the research of this paper,the performance evaluation model of market value management is applied to a single case company,and also to the whole industry.It reflects the effect of market value management of Dahua Stock more profoundly.It is helpful for the company to self-check the progress of market value management,and also helps the company to formulate the future direction of development.