Performance Study Of The Organic Growth Of Listed Companies In China

With the further reform of market economy and upgrade of economic structure, Domestic enterprises are facing increasingly fierce competition. More and more enterprises choose the epitaxial development style that is gaining increasing by M&A, but some research about the performance of M&A indicate the risk of M&A is high. Organic growth is a content-type approach to development and it depends on its own innovation. This paper define the listed companies of organic growth that maintained good organic growth from 2004 year to 2009 year, take these as research objects, study its performance of capital markets and managing and the relationship of both in long-time. The main contents are as follows:The first part generally describes the background, meaning, significance, ideas, content, purpose, frameworks and methods of this study. The second part describes the performance of the theory and the theoretical basis of this study of performance and defined related concepts. In the third part author choose or build measure index of performance of the organic growth listed companies'stock and asset management, study the relationship of both performance. Assuming the investor in market made decision with adaptive expectation, author build correlation test model about performance of management and capital coming form non-system factors. The fourth part is analyzing the performance of capital market and management by the above methods. The result is:from 2004 year to 2009 year, the cumulative yield of the 18 listed companies of organic growth is 10.07 times as the cumulative of the shanghai composite index,4.09 times as the cumulative of the Shenzhen component index; the annualized rate of return of organic growth is 0.506, and the annualized rate of return of shanghai composite index is 0.140, and the annualized rate of return of the Shenzhen component index is 0.257.In the multi-phase study, Earnings per risk of the sample in shanghai stock exchange is 0.6738 and the earnings per risk of the shanghai composite index is 0.6189.Earnings per risk of the sample in Shenzhen stock exchange is 0.7214 and the earnings per risk of the Shenzhen component index is 0.6246. Made a decomposition of the sample's income, it turns that income coming from the non-system factor accounted for 37.79%. The sample's performance of management,by ROE, was 1.77,3.02,2.03,2.2,3.76,2.54 times of the average of the all listed companies'management performance in Shenzhen stock exchange; The sample's performance of management,by ROE, was 2.77,1.68,1.59,1.79,1.70,1.38 times of the average of the all listed companies'management performance in shanghai stock exchange. This paper get the result from the research on the correlation between non-systematic risk-benefit and difference-ROE that there is a positive correlation between them. The difference-ROE means the difference between the ROE of the organic listed companies and the ROE of the companies that have the same business risk and financial risk.that explain why the organic got a positive non-systematic risk-benefit. The last part is to give some suggestions on choosing the way of development of listed companies:different development approach of different listed companies and some measures of improving the organic growth ability.