A Study On The Performance Impact Of The Midea Group Overall Listing

Due to historical reasons,in the early days of capital market establishment in our country,a large number of enterprises came out to be listed by splitting some of the excellent assets of group companies.With the continuous development and improvement of China's capital market as well as the promotion of the reform of the financial system,the overall listing appears in the capital market as a financial innovation.In 2003,TCL successfully listed the group through the merger of “TCL Communications”.It has created a precedent for the overall listing of China's group companies.The state supervision department also issued a clear support policy,and at that time,the wave of listing of the group company as a whole started and the pace is accelerating.The impact on the overall listing depends on whether the implementation of the overall listing can increase the wealth value of investors and improve the positive corporate performance of listed companies.This article selects the overall listing of Midea Group as the main research object.By studying the changes of market performance indicators and financial performance indicators before and after its overall listing,it explains the impact of the overall listing on the corporate performance of the United States group and analyzes the impact of its role path.By summarizing and analyzing this case in a small way,this article puts forward some experience summary and reference significance that can be popularized and used for reference for the enterprises that plan to implement the overall listing in China's capital market in the future.The author studies by combining the theory with case.Through the research,it is found that the motivation of the overall listing of Midea Group is mainly to enhance the industry status of enterprises and improve the corporate governance structure in order to finally achieve the goal of integrating the group's industrial chain and improving its profitability and core competitiveness.Through the comparative analysis of specific data,it is found that the overall listing of Midea Group has achieved positive market performance both in the short term and in the long term,and has also brought more positive effects on financial performance,it has improved to a certain extent in terms of profitability,growth and solvency.Overall,it is a relatively successful case.The main reasons are as follows——clear adjustment of ownership structure and improvement of corporate governance structure;Reducing related transactions and enhancing the independence of business operations,so then reducingthe transaction cost of enterprises and the possibility of damaging the benefits in the related transactions,which is propitious to the improvement of enterprise performance.Interbank competition has been reduced,core business has been integrated,the group's size has increased,profitability has been enhanced,which effectively enhance its position in the industry.After the overall listed,the industrial chain has been perfected,the internal resource allocation has been optimized,the organization management cost has decreased,the scale benefit and the synergy benefit have been played,which enhanced the core competitiveness of the enterprise.This article suggests that enterprises planning to implement the overall listing,it is necessary to have a sound strategic planning under the premise of cooperation with the implementation of the overall listed to give the overall listing clear purpose.It should choose the best overall listed mode based on our actual situation.When making the overall listing plan,it must also follow with interest on the quality and relevance of the injected assets,because this has a direct impact on the long-term performance of the group enterprises after the overall listing.Meanwhile,after the completion of implementation,it must attach importance to the subsequent integration of cultural,human,management and other aspects,which achieve the purpose of the overall listing and strategic objectives.This article is divided into five parts: The first part is an introduction,which introduces the research background and significance of the article,as well as the related literature on overall listing and enterprise performance and put forward research ideas and methods.The second part discusses the concept,motivation and mode of overall listing,the concept,classification and evaluation method of enterprise performance,and analyzes the mechanism of how overall listing affects enterprise performance from four aspects: ownership structure,related party transactions,peer competition and synergy.This will pave the way for the case study in the following article.The third part is a case study,introducing the background,motivation and operation process of Midea Group's overall listing.It also makes a detailed analysis of its choice of stock exchange and merger mode.The fourth part analyzes the changes of market performance and financial performance of Midea Group in seven years before and after its overall listing by using event research method and financial index evaluation method.At the same time,combined with the mechanism analysis of the previous theoretical part,the article specifically expounds the path of the effect of Midea Group's overall listing on its performance.The fifth part is the conclusion of the case study of Midea Group's overall listing,which sums up the experience that Midea Group can promote and draw lessonsfrom in listing as a whole.The following four key revelations were drawn,including:Improve strategic planning,clear the overall purpose of listing;Select the optimal mode according to its own situation;Focus on the asset injection,affect the long-term performance;Attach importance to subsequent integration to ensure that the goal is achieved.