The Study On The Performance Of Listed Firms By Introducing Foreign Strategic Investors

With the development of equity division reform, introducing foreign strategic investors is an important action of development in listed companies. With the increasing number of foreign strategic investors, there are also some new problems: People doubted why the transaction price is much lower than market price. Because some investors chose to sell the stocks of Chinese listed companies after the hold period, listed companies got huge losses. Besides, scholars thought whether foreign strategic investors would bring security risks to national economy and major industries. Companies open to foreign strategic investors, not open to domestic capital. Is the introduction of foreign strategic investors a wise choice?The original purpose of introducing foreign strategic investors:listed companies can improve corporate governance and performance with the help of foreign strategic investors. Foreign strategic investors have a strong industrial background, good corporate governance structure, excellent financial, technological, marketing, managerial resources etc. The evaluation of the influence of the foreign strategic investors on the domestic listed companies is an important topic related to the reform of Capital market and the development of listed companies. Based on this background, the paper analyzes the influence of the foreign strategic investors on the domestic listed companies by the theoretic and statistical ways. The paper also gives some available proposals to the introducing of the foreign strategic investors by the listed companies in our country.According to the themes and train of thought mentioned above, this paper is divided into four parts:The first paper is the introduction of this paper outlining the background of topics, research significance, research developments both at home and abroad, train of thought and research methods, innovation and shortcoming. The second part is basic research, first, three basic theories——corporate governance theory,system variance theory and strategic management theory are introduced. second, the paper defines the concepts of foreign strategic investors; third, it gives a description of the performance of listed companies by introducing foreign strategic investors from 2002 to 2008. fourth, it analyzes how foreign strategic investors influence the performance of the listed companies. The third part of this study uses empirical data to research the influence of the foreign strategic investors by controlling a series of factors. The result shows that there is a significant negative relationship between shareholders structure and performance of the listed companies. It also reveals that whether foreign strategic investor is control shareholder has a significant positive effect for performance of the listed companies. Part four puts forward some proposals to the foreign strategic investors according to the research findings.The characteristic and innovation of this paper is that, first, the paper analyzes how foreign strategic investors influence the performance of the listed companies. second, it expands the range of study, changing from commercial banks to listed companies. Most scholars focus on the influence of commercial banks in the perspective of economics, the paper does research on this issue that how foreign strategic investors affect performance of non-financial listed companies in the perspective of accounting.. The paper gives some available proposals to the introduction of the foreign strategic investors after statistical ways.