Research On The Overall Listing Corporate Performance Of Power Construction Corporation Of China

Due to the late start of China's capital market and the imperfection of the initial systems,it was difficult for companies which were planning to go public.The capital market had high requirements on enterprises.At the beginning,in order to meet the requirements of listing,enterprises generally put the high-quality assets and the profitable business together for listing,and spin off the businesses with poor quality and poor profitability,which is called spin-off listing.The emergence of spin-off listing alleviates the problem of listing in a certain period,but in the long run,it will lead to horizontal competition and related transactions,which will not only affect the normal production and operation of enterprises,but also has impact on the fair order of the entire capital market and destroy the trading environment.As a financial innovation,the overall listing has become a way to solve the disadvantages of the split listing.After years of development,it has become one of the important ways for large state-owned enterprises and private enterprises to go public.Overall listing plays an important role in reducing related transactions,eliminating horizontal competition,enhancing corporate independence and protecting the interests of minority shareholders.What's more,it is conducive to expanding the scale of enterprises rapidly,improving the overall competitiveness of the company and it's more simple than IPO.It is very popular with enterprises for all these reasons.As the continuous advance of China's mixed-ownership reform,SASAC and CSRC have been exploring ways to promote the overall listing of large state-owned enterprises.They have issued a series of regulatory documents,which clearly support the overall listing of state-owned enterprises.As a large state-owned enterprise in the construction industry,China power construction group chosed to go public in the background of deepening reform nationwide.This paper mainly analyzes the case of China power construction group and studies the impact of the overall listing on its performance.On the basis of introducing the relevant theories of the overall listing,this paper takes the case of Power Construction Corporation of China as the research object.Firstly,this paper introduces its basic situation,the motivation,its process and program of the overall listing,and then analyzes it's market performance,financial performance and non-financial performance.This paper adopts event study in analyzing market performance which is segmented into short-term market performance analysis and long-term market performance analysis.However,this paper adopts factor analysis method for financial performance.This paper finds the following conclusions through the above research:(1)Overall listing can bring positive wealth effect to shareholders and thus improve the market performance of enterprises.(2)The overall listing has not improved the company's financial performance comprehensively.The overall listing hasimproved its growth ability and operation ability,however its performance is still unstable in terms of profitability and solvency.(3)The overall listing can reduce the connected transaction to some extent and eliminate competition to a great extent.(4)Overall listing can expand the scale and enhance the development potential of the enterprise.Although China power construction gained many advantages after the overall listing,we cannot ignore the existing problems.Based on the comprehensive analysis results,this paper puts forward the following two questions:(1)The capital structure of China power construction is not reasonable and the debt ratio is too large,which requires vigilance of financial risks;(2)The cost and expense control of China power construction needs to be strengthened to prevent profit from being eroded.In view of these problems,this paper put forward the following Suggestions combined with the actual:(1)Optimize capital structure and reduce financial risk.(2)Strengthen cost control and improve profitability.(3)Reduce related transactions and enhance the independence of the company.