Research on the Control Rights Market of Chinese Listed Companies

Author: Gao Yuxiang
Publisher:
Publish Date: 2004-09-01
Features: This paper starts with the paradox of the development of China's company control rights market, reviews the current status of domestic and international theoretical and empirical research on company control rights markets, compares the similarities and differences of company control rights market models in various countries, and emphasizes the important role of institutional factors in the emergence and development of China's company control rights market. It establishes a theoretical and mathematical model of China's listed company control rights market based on the ICP analysis framework, demonstrates the key factors and mechanisms of the control rights market, proposes the hypothesis of "low performance of the company control rights market under the state of equity division," and conducts detailed empirical tests from both corporate performance and market performance perspectives. The study draws clear research conclusions and corresponding policy recommendations, thereby filling to some extent the current gaps in research on this topic both domestically and internationally. Among them, the basic conclusion of this paper is: "Although there are frequent mergers and acquisitions, overall, the company control rights market under the state of equity division in China is low-performing; this low performance is not an accidental market deviation but rather a result of institutional changes and institutional supply; blindly applying existing Western conclusions on company control rights markets under different institutional changes and institutional supply conditions is not only useless but even harmful." With rigorous theoretical analysis and detailed empirical results, it clarifies the prevailing vague notions in China, such as "mergers and acquisitions create value," "effective utilization of shell resources," "solving the problem of state-owned share reduction through off-exchange agreements," and "cultivating the company control rights market to improve corporate governance." This provides valuable references for accurately judging the value orientation, role, and development trends of the domestic company control rights market at the current stage, as well as promoting the correct choices of institutional suppliers in this field.