A Research On The Impact Of Holistic Listing On Performance

In the early time when Chinese capital market was just established,considering the capacity constraints of capital market,Regulatory authorities take both "approval system" and "quota system" to manage companies,which lead to some enterprises,especially state-owned enterprise,split off some high-quality assets and list,for achieving the regulatory authorities' demand of size and profit.However,with the development of the securities market,its defects gradually reveal.In split mode,there are a lot of related party transactions,it can also lead to the competition of group companies and listed companies,and it will influence the performance of enterprise.Holistic listing is one of the methods of solving it.Holistic listing not only cause a craze in practice circle,it also attract attention of researchers.Most of researches about the influence of holistic listing on listed companies' performance were focused on short-term performance.Most of researches about short-term market performance have the same conclusion,it has a positive reaction.And many researchers have found that most listed enterprises' financial performance improved at the year of holistic listing.But the conclusions of long-time performance are different.Though theory and case studies,it can analyze the influence of the holistic listing on performance of the Shanghai Construction.Based on reviewing and summarizing literature,it analyze 8 years' performance before and after the holistic listing though comparative analysis and du pont analysis.It found that,the financial performance has improved,and at the year of holistic listing was the most obvious.The improvement of main business income and total liabilities lead to the improvement of financial performance.Holistic listing optimized resource integration,diminished related party transactions,strengthened the independence,and diminished the competition of group companies with listed companies,improved performance.Corporate governance and internal control system are better,the decision-making process were more scientific and standardized,and reduced the cost of risk.Strategic development orientation was clearer and more systematic,leading to a pattern of integration,and increased income.All of these improved the financial performance of Shanghai Construction.