Listed Companies Tradable Share Reform Financial Performance

The Separated Equities System Reformation, which started at May 9, 2005, is a consequential event changing the operating pattern of stock market, and concerned by each side. Through the passed one more year, the reformation made the operating mechanism of Chinese stock market to accord with the international conventions, and radically changed the appraising system of circulating stock. This research focuses on if the reformed companies have improved their resource-using efficiency, self-value and operating results.This paper adopts the financial data-based method to research and analyze the capacity to earn profit, asset quality, debt risk and operating growth of the first and second batch of trial companies. The research results indicate: The two batches of reformed companies have gained good operating results, but contrast with the corresponding period, except the obvious increase in velocity of receivables and cash flow of each stock caused by operating activities, the capacity to earn profit, asset quality and operating growth declined and debt risk was strengthened. On the other side, the decrease rate of each stock profit is more than the average of all listed companies, and the increase rate of cash flow of each stock is less than the average of all listed companies. So the expectation of a better business results through the Separated Equities System Reformation is not statistically supported in this paper.Dependent on the modern economic undertaking theory, property theory, marketing theory and corporate undertaking theory based on inadequacy contract theory, four problems are discussed in this paper: first, to begin with analyzing the political and economic reasons why Separated Equities System is formed under Chinese characteristic, analyze its deficiency and review the four ineffectual reformation of national-stock-reducing (realization); then, introduces the theories and literature relating stock rights structure and company performance research, which inspires this paper to research the operating performance of enterprises in post Separated Equities System era; the...