An Empirical Study On The Performance Of Holistic Listing

In September2003, TCL Group Corporation achieved the goal of parent company listing by mergering its subsidiary companies, this model is regarded as a new way of solving the "Spin-off". A large number of companies have followed the TCL Group Corporation’s practice to reach the goal of "holistic listing". At the same time, the Government also encouraged companies to "holistic listing" in order to optimize the corporate governance structure and improve the company’s performance. Holistic listing can increase the quantity of assets, improve the quality of assets, adjust the industrial structure, reduce the related party transactions, and improve corporate governance, so it became one of the hottest themes in the stock market. But, what the real performance of the corporate is after the overall listing, whether it has brought wealth for the corporate or for the shareholders and investors, it is a big question.This thesis analyzes the performance of the corporate which achieved holistic listing in different ways by empirical study. We analyze how the stock market react to the phenomenon of list as a whole using the method of event study analysis, which is to verify whether the overall listing can increase the value of the corporate; we study what factors can influence and how these factors affect the corporate’s performance after listing in integrity using the method of regression analysis. This can provide some operating inspirations and decision-making basis for business managers, investors and government regulatory agencies. Therefore, it has both important theoretical and realistic significance to study and analyze the phenomenon of corporate holistic listing.In this thesis, both method of normative analysis and empirical research analysis are used to study how overall listing influences corporate’s performance. After elaborating the efficiency market hypothesis, the principal-agent theory. information asymmetry and enterprise boundary theories, the thesis introduces the concept and the significance of holistic listing, and interprets ways to realize holistic listing, as well as how the holistic listing influences company performance. After the explanation of theories, the thesis puts forward five assumptions. Then, the thesis uses event study and multiple regression analysis to do empirical research. In the event study, the thesis calculates the sample companies’average excess return and calculative average excess return on10days before and after the announcement of the holistic listing plan, and then does the T test using them. In the multiple regression analysis, we construct the regression model with comprehensive consideration of information of the corporate governance, business operation, the ways to be overall listing, the stock structure, industry, and the year. In the model, the calculative average excess return is regarded as be explained variables, and the ways of listing in integrity, the nature of company, the shareholder’s ratio, and the quantity of assets injected are regarded as explanatory variables. Do the regression test using the model to verify whether the previous mentioned five assumptions are established. The result of the empirical test is as follows, firstly, the stock market reacts positively to the overall listing. Secondly, the private offering is better than other ways to realize holistic listing. Thirdly, the more assets the parent company injects to the listing companies, the better the stock market reacts. Fourthly, the bigger the stockholder ratio is, the better the stock market react to the overall listing. Lastly, the stock market reacts better to the state-owned corporate than non-state-owned corporate.This thesis is divided into five parts; the first part is a brief introduction, explaining the research background and significance of the article, the current situation and trends of research on the corporate performance of the overall listing both at home and abroad, as well as the research content, methods, and the proposed innovation. The second part is the theoretical part, mainly introduces relative theories and some concepts, which form the basis of the following assumptions later. The third part interprets the hypothesis of the article, research methods and regression models. According to the previous theoretical analysis, the thesis proposes five research hypotheses and correspondingly explains the definition of variables to construct multiple regression empirical model. The fourth part is the sample selection and empirical test, which is the core part of this thesis. This thesis selects companies in Shanghai stock exchange and Shenzhen stock exchange which offer A-share in the market from2004to2010as samples. After empirical test using SPSS software, we analyze and demonstration of result. This part uses both event study method and regressive analysis to study corporate performance after the holistic listing, and what factors influence corporate performance, and how they influence corporate performance. Those two methods can complement each other, and overcome the limitations of only using single method. The fifth part is the conclusions and recommendations. This part draws conclusions by the previous theoretical analysis and empirical research, and gives relevant advices to investors, managers and government agencies correspondingly.