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Analysis of the effect of the central enterprises listed group of companies as a whole

Author: Anonymous From: www.yourpaper.net Posted: 2009-04-01 12:43:41 Read:
Author: Peng Shao Bing Zhao Gen Mohammad I pull wood
[Abstract] In this paper, the SASAC to promote the state-owned central enterprises listed as a whole as the background, Wuhan Iron and Steel Group Company and TCL Corporation, for example, from the perspectives of the ownership structure and corporate performance, analysis of the effect of the Enterprise Group of the overall market. The results show that, the company is listed as a whole to reduce the proportion of non-tradable shares, the shareholding structure of the central enterprises increased mobility. But in the long run, the overall market is not an effective way to improve company performance.
[Key words] listed as a whole; ownership structure; corporate performance

In recent years, the SASAC central enterprises to actively promote the overall market, bigger and stronger state-owned central enterprises (hereinafter referred to as the central enterprises) as a strategic measures. As of the end of 2006, total assets of 159 central enterprises (hereinafter referred to as the central enterprises) has more than 12 trillion yuan A-share listed more than 30,000 yuan. Visible, the central enterprises of the overall market potential is very large.

Introduction

The ownership structure is an important part of the corporate governance structure, but also the most fundamental issues of corporate governance to be solved. Shareholding structure (ownership structure), including two meanings: First, the investment ratio, the proportion of the structure of the total share capital of the shareholders' investment, the identity of the shareholders who constitute different concentration of equity; power relations, shareholders in accordance with its investment ratio, embodied in the corporate control of the control and distribution of the pattern. Taken together, the shareholding structure of the Company's shares held by the proportional relationship refers to the different types of shareholders in the company, including the shareholding structure and ownership concentration, that of the "quality" and "quantity" two aspects.
Ownership structure and corporate performance there is a correlation between the results of existing research literature of Chinese scholars can be seen: the relationship between ownership structure and corporate performance has not been the same conclusion: Chen Xiao, Jiangdong (2000) study found that in a competitive industry, state-owned shares share proportion and company performance showing a significant negative correlation relationship between the proportion of legal person shares, the proportion of outstanding shares and the company performance showing significant positive correlation relationship; Zhang Hongjun (2000) found that, between company performance and the proportion of legal person shares of U the relationship between the type, the proportion of state-owned shares and corporate performance is not significant; Xiaonian, Wang Yan (1997): there is a positive correlation between ownership concentration and corporate performance; Yongxiang, Zu-Hui Huang (1999) show that equity there is no single relationship between concentration and corporate performance; Zhu Wuxiang, Song Yong (2001) studies suggest that the value of the company and the shareholding structure of the Company, the state-owned shares and legal person shares or external public shares, governance and management practices of listed companies and the results of operations of the lack of influence.

Second, research ideas

The Enterprise Group listed as a whole must change its ownership structure, ownership structure and corporate performance there is a certain relationship (although this relationship theoretical circles have not been the same conclusion). Therefore, the company is listed as a whole, will not only change the shareholding structure of the Group, will also affect the Group's corporate performance. The author were investigated from two perspectives of the ownership structure and corporate performance, the overall market effect of the Enterprise Group.

(A) the shareholding structure
Domestic and foreign scholars in the study of the shareholding structure of the selection of indicators vary the foreign scholars reflect the ownership concentration Huffington Jorda Index stake of the largest shareholder, the five largest shareholders Percentage of Shares, the top ten the proportion of the largest shareholder, the internal stake (members of the board of directors, senior management holdings) and other indicators. Domestic scholars in the study of the structure of China's listed companies, the classification is the capital is divided into state-owned shares and legal person shares, A shares, B shares, H shares, internal employee shares, turn allotment; divided into tradable shares and non-tradable shares, This classification is based on the specific circumstances of China's listed companies and capital markets.
In this paper, the analysis of the overall listed on the shareholding structure of the shareholding structure of the division for the circulation of shares and non-circulation shares (including state-owned shares, legal person shares), analysis of state-owned shares, legal person shares, circulation of shares before and after the listing of the overall shareholding proportion of change, by changes to further analyze the impact on corporate performance.

(B) Performance
Corporate performance generally refers to a certain business enterprise efficiency and operating results for the period. The business benefits mainly in terms of profitability, asset operational level, solvency and the subsequent development of the ability. The operating results of those operators to reflect the results achieved by business, growth, development and contribution to the process of the management companies. Thus, corporate performance is a more rich connotation of the concept. Corporate performance is not only a static description of the results of the business, but also covers the dynamic characteristics of the concept of sustainable development.
Corporate performance can take a variety of indicators to assess financial indicators such as return on net assets, main business profit margins and growth indicators. Theorists on corporate performance measure commonly used by book value (MBR) and ROE (ROE) two representative indicators to evaluate the company's performance reflects the market for the company because the book value (MBR) evaluation of the quality of assets, the net return on equity (ROE) reflects the level of return of investment of the shareholders of the Company. This paper are listed in the study overall impact on corporate performance, the book value (MBR) and ROE (ROE) to analyze and measure.
The purposes of the calculation of book value, before the split share structure reform, the total share capital of the listed companies in China contains a large number of non-tradable shares. Difficult to determine due to the price of non-tradable shares, leading to calculate the market value of the non-tradable shares of a certain deviation, how to determine the price of non-tradable shares is the key to the calculation of book value. This article draws on Du Ying, LIU Li (2002) book value, as the prices of non-tradable shares with a market value per share of 1/2, resulting in book value. Ie:
MBR = ( 0.5 กม market price per share of the market price per share กม number of common shares outstanding กม number of non-tradable shares) / net assets book value
In order to suppress the abnormal price fluctuations in the value of the shareholders' equity, beginning of each month of the year and the end of the month as the arithmetic mean of the closing price of the market price per share calculation; book value of net assets at the end of the year the number of determined.
ROE = net profit / average balance of net assets
Among them, the average balance of net assets to the arithmetic average of the beginning and the end of the carrying amount of the net assets value.

Third, the overall listing of ownership structure and corporate performance

Wuhan Iron and Steel Group Company and TCL Corporation listed as a whole, for example, analysis of the whole group before and after the listing of the changes in the proportion of non-tradable shares and tradable shares, and the consequent performance change.

(A) Wuhan Steel shares listed on the shareholding structure and corporate performance overall
1. Overall listed shareholding structure
Listed as a whole, the proportion of non-tradable shares of Wuhan Iron and Steel shares to 84.69%, the state-owned legal person shares is due to the dominance of the state; smaller proportion of the outstanding shares, the shareholders of the outstanding shares is more scattered, is not conducive to listed companies to establish an effective internal checks and balances and restraint mechanisms, the controlling shareholder can not effectively supervise. Overall market, the non-tradable shares in proportion decreased, the proportion of non-tradable shares and tradable shares decreased from 11:2 to 19:6, accounting for 75.81% of the proportion of non-tradable shares, the shareholding structure of the liquidity has been enhanced, but not yet a fundamental solution to the state-owned legal person shares "due to the dominance of the state (Table 1).
2. Listed as a whole on corporate performance
Wuhan Iron and Steel Group's overall market on June 30, 2003, 2001, 2002, 2004 and 2005, with the overall market after the Wuhan Steel shares listed as a whole MBR and ROE data are shown in Table 2. As can be seen, Wuhan Steel shares the overall market after the first year of MBR minor rise, but there was a decrease after the second year, but the company's ROE has been in a rising trend, the overall market after the ROE is more than the industry average. (Table 2)
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