The Impact Of Holistic Listing On The Performance Of Daqin Railway Co,.Ltd

Holistic listing was known as a method to solve the problem of the "spin-off" between listed company and its unlisted parent company. Holistic listing has become more and more popular among companies, however the performances of different companies after holistic listing are different. Under this background, this paper use Daqin Railway co,.ltd as an example, try to answer if the holistic listing of Taiyuan Railway Administration improve the performance of Daqin Railway Company, on which kind of performance does it influence, and why holistic listing has those impact.In this paper performance of a company was divided into two aspects- short-term market performance and financial performance, and short-term market performance was measured by CAR, while financial performance was measured by ROE. This paper used event study to find out how holistic listing influence short-term market performance, and used Dupont analysis method to study the impact on financial performance of holistic listing.The main conclusions of this paper are as follow. First, the holistic listing of Taiyuan Railway Administration improved the short-term market performance of Daqin Railway Company, however the following merger led to negative market performance. Second, after the holistic listing, the financial performance of Daqin Railway Company increased in a short period, but decreased in a long run. Third, the holistic listing didn’t improve the efficiency of management and operation, it brought more financing ability to the group, and didn’t solve the problem of the "spin-off" such as related party transactions.According to the conclusions above, the holistic listing of railway company group mainly increased the financing ability of the group, rather than the financial performance. Taiyuan Railway Administration is the first holistic listed group in railway companies in China, this case could be a reference during other railway companies’ holistic listing.