Analyzing the Split-share Structure Reform Intention of China Stock Market

• Main Authors: Ting-ting Wu, 吳婷婷
• Other Authors: Jeng-Ren Chiou
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/26946289677560175708

碩士 === 國立成功大學 === 會計學系碩博士班 === 95 === There is a particular system different from other countries' existing in China stock market which is called Split-share Structure. The circumstance of split-share structure is the result of transforming from a planned economy to a socialist market-planned economy. In order to process the problems caused by the division and to catch up internationally, China Securities Regulatory Commission has been addressing itself to the Split-share Structure Reform. Fortunately, the government has cracked the code on the attempts and failures and the reform rolled out on April 29, 2005. Although confronted with doubts from the market, China government had revealed its determination to settle the decades long problems. In the end of 2006, most of the firms had accomplished the reform, which led China stock market into a brand-new world. This paper starts from the investigation of the history, denotation, and problems of Split-share Structure , and to reveal the importance of the development and regulations of its reform. We use the Logistic Regression to analyze the determinants of firms to apply split-share reform, which include the characteristics of firms and that of shareholders. We find that firms with larger firm size, more cash, more retain earnings, more additional paid-in capital, more earning per share, and more fraction of nontradable shares have intensive motivation to apply split-share reform and will step into the process earlier. Firms with higher PE ratio and ST marks will step into the process slowly.