Study On The Impact Of New Delisting On ST Company Performance

With the development of our securities market, delisting system becomes moreand more important. Because it keeps the securities market stable and healthy,undertakes to discard the dross and select the essential, eliminates inferior to thecompany and stimulates the other company’s profits. With the market improving, thedelisting system should make a progress. For example, ShenZhen stock Exchange hassuccessively promulgated and implemented a new delisting system scheme in July,2012. After implementation of new delisting, the most direct and affected STcompanies, because these companies are on the verge of poor performance delisting.Because new regulations newly added indicators more specific and stringent, STcompanies forced new delisting pressure, in order to avoid delisting they need totimely and effective manner to improve performance. Therefore, through scientificand timely evaluation of the new delisting regulations affects ST companies’performance, it has practical significance about promoting effective implementationand perfect the new delisting system. For our delisting accumulate experience fromdelisting system, we are from the following aspects:1) In the before and afterimplemented new delisting system conditions, for ST’s financial data empiricallyanalysed.2)From the perspective about ST companies performance, evaluating newdelisting system influence ST.3)From the influences, new delisting regulationsremains to be improved.Article is structured as follows: through theoretical expound delisting system andST system, analyzed the cause about delisting system implementation effect in ourcountry. On the basis of data our delisting data urgent need to further improve in thefollowing areas:1)stringency delisting system2)administrative intervention ofgovernment3)After delisting small investors compensation influence the newdelisting regulations for promoting ST performance. By analysis horizontal andvertical samples new delisting regulations released before and after has effects on ST,we come to conclusions: the relationship between new delisting system andST,short-term rise,long-term and sustained promotion for listed companies. Finally, the article concludes: Although the new delisting system adds more specific financialindicators, listed companies in particular ST has no long-term and sustained promotein enhancing company’s performance. Even ST system became inferior companies toavoid delisting buffer zone. Forcing delisting companies are not consider to improvemanagement and performance, but for its qualification and drilling system. Excessivegovernment intervention especially in the lack of support investors has effect onimplemented delisting system, enhancing the companies’ performance. Finally, thearticle put forward a sound policy recommendations related to the delisting system.