The Research Of The Relationship Between The Holistic Of Group Company Of China And Company Performance

The thesis researched the importance of holistic listing and its positive impact on company performance under Parent-subsidiary corporate theory.The research found that the private control rights of the Parent-subsidiary Corporate is widely exited in China, and is the main courses behind the damage of the interests of medium and small shareholders by the controlling shareholder.The thesis found that under the segmental listing mode, the private control rights of the Parent-subsidiary Corporate is inevitable and holistic listing is necessary to solve the private control rights problems, to improve Investor Protection and to have positive impact on listed company performance.The empirical results showed that after holistic listing, the listed company got better performance such as better ROE, resulted from better ROA, lower expenses rate, better activity (total asset turnover), better receivables turnover and more short term debt rate, highly significant. The empirical results support the Parent-subsidiary Corporate theory that the controlling shareholder is less motivated to damage of the interests of medium and small shareholders.