The Effects By Quoted Company Capital Reform On Enterprises' Values

In recent years capital reform is always a hot topic in Chinese Securities Market. Since the appearance of quoted company capital reform in 1993, capital reform has developed like a raging fire in 1997 and the amount of capital reform has been about 1000 by the end of 2000. Not only the width but also the depth of capital reform and the mode of it are unprecedented. The paper discusses the effects by Chinese quoted company capital reform on enterprises' values in such background.Firstly, it discusses the results by many kinds of capital reform modes. For example, desquamation schism stands out the main businesses of enterprises, merger purchase realizes polygonization manage, stock transfer changes the unreasonable structure of stock ownership in enterprises, capital displace immits fine capital to quoted company. In one word, rational operation of different modes of capital reform will produce active effects to the increase of enterprises' values. But capital reform is not tanacea. If the capital reform is not in essential, the enterprises will be washed out of the securities market.No matter which mode quoted company uses, the result of capital reform will be reflected in the financial index. Therefore this paper discusses the common analytical method of different capital reform modes. That is to estimate the influence by observing the change of accounting index. In the end of this paper it discusses such common analytical method by an example of NanKai WuDe capital reform.