Research On Market Value Management Of Listed Companies

With the coming of the full circulating era of the stock market, the concept of "value management" became a hot topic in China's capital market. Value management is not only related to the market value of shareholders and managers'interests in listed companies, but also related to the development of the capital market. Managing the market value of listed companies can promote the transforming of its business objectives very well—from the pursuit of profit maximization to the pursuit of maximizing the market value. It can reduce its financing costs, so that stock prices will reflect the intrinsic value of the enterprise much more veritably. It can improve and enhance the capacity of distributing resources in capital market. At the same time, value management also can provide a more effective market mechanism about how to inspirit and restrict the market. What's more, it promotes the managers to improve the efficiency of governing and operating the listed companies initiatively, and then brings more economic interests to the shareholders and investors. Therefore, it is necessary to make in-depth study of managing market value of listed companies.In this paper, both theoretical analysis and empirical research methods are used. Firstly, it explains related concepts about market value and market value management, and then describes market value management's objectives and misunderstanding. Secondly, it makes analysis about the impacting factors of market value management in theory, including the seven areas:industry, operating performance, corporate governance, capital structure, investor relations, brand premiums and social responsibility. Thirdly, the paper use 2009 annual report data of 1136 listed companies in Shenzhen and Shanghai Stock Exchange to establish the multiple regression models, selecting the factors that have more effecting to the market value. And next, it analyses the results and gets the following conclusions:the operating achievement, industry position, asset size, ownership structure and management incentive has a significant positive effect on market value of listed companies; its'capital structure and current stock shares have a negatively relation with the market value; the proportion of independent directors and the company's listed place are not significant to market value. May be the reason is the system of independent directors of listed companies in China is not perfect, and the market mechanism is not perfect that result it. Finally, according to the research, the paper makes recommendations to help improve the market value management for listed companies, so that the company can create more wealth for the shareholders.