The Analysis About Motivation And Financial Effects Of Chinese Overseas Listed Company's Privatization

Since most of the enterprise's goal is to use the capital market to finance,the market's strong leverage helped enterprises acquire economies of scale.With the global economic integration and capital flows become more liberal,the financing options available for enterprises become more plentiful.Beside issuance of stocks,bonds in the domestic market,some companies began to finance overseas.Chinese concept of the company,refers to these companies that main production and business activities occurred in mainland China,and listed overseas,and these companies' stocks are also referred to China concept stock.In July 1997,since the first China concept stock-China.com listed on the Nasdaq,until the early 21 st century,as many as hundreds of shares listed overseas,the stock also attract the capital Market all over the world.In June 2010,since the listed company East Paper was suddenly shorted by the Muddy Waters,China concept stock had been attacked by agency.Affected by this,a large number of stocks' prices plummeted,investors gradually lost confidence in the enterprise.In this case,many overseas-listed began to choose privatization.According to statistics,by the end of 2016,there were still 39 stocks declare to go private in the year.For the listed companies,go privatization means to loss the support of capital market,which may have a great impact on the development of the company's future,so it is concerned about the reason of privatization and what will appear after privatization.Based on this,I think it is necessary to analyze depthly.The thesis selected the case that Focus Media private from the Nasdaq,to study the motivation of privatization and the privatization of the financial effect.Focus Media was established in June 2003,listed in the Nasdaq in July 2005,which lasted eight years after the development,and chose went privatization in May 2013.The privatization of the Focus Media,became the largest privatization of the transaction,and it demonstrate the process of privatization typically.The focus of the thesis is motivation and financial effects,mainly used methods of normative research and case analysis.The thesis is divided into six parts.The first part briefly introduces the research background and significance,domestic and foreign scholars,the methods and the basic framework of the thesis.The second part focuses on the definitions,methods,motivations and theoretical basis of the privatization of stocks.The third part is a brief introduction to the case of privatization of Focus Media,which introduces the statusof the Focus Media,the privatization process and the privatization strategy.The fourth part focuses on the analysis of the motivation of the privatization,which analysis from there aspects,including the market situation,the company's development strategy and positioning.The fifth part compares the financial performance before and after the privatization of the company,and explains the market reaction and development after the privatization.It points out that the performance of the company has increased and the competitiveness of the enterprise has been improved.The sixth part is conclusion and enlightenment.On the basis of the first five parts,the thesis summarizes the conclusions and revelation of this case,and provides reference for the privatization of other Chinese enterprises listed overseas.