The Long-Term Wealth Effect of Overall Listing - Chinese Enterprise Group's Experience Study

Abstract

In recent years, the enterprise groups have a growing need for their advantage of economies of scale during its rapid development in China, the growing need for its advantage of economies of scale, so the overall listing has gradually become an important means for the enterprises to re-integrate their internal resources. In addition, with the capital markets maturing, and providing favorable conditions for the overall listing, the overall listing, a financial innovation model has become a hot topic in the securities market. This article studies the public companies which declared and completed their overall listing during the period of 2006-2007, and still operating normally till December 31, 2013. We calculate their six years’ long term excess return after their listing, and analyze that whether the overall listing has long-term wealth effect on the public companies, and determine its trends. Finding shows that factors such as internal control and governance structure has a certain influence on the long-term wealth effect of enterprise