中国上市公司盈利管理研究(53页).pdfVIP

Profitability of Chinese listed companies1 Project executives Dong Tao Wu Boling Shi Zhengfu Project coordinator Lu Wenying Project Members Credit Suisse First Boston Dong Tao Sheila Yip Fudan University Wu Boling Shi Zhengfu Yang Mingqiu Dong Honglei Abstract The aim of this project is to look into the profitability of A-shares, B-shares, H-shares and Red Chips in the period of 1995~2001. We chose return on equity and net income margin as proxies for profitability. We compare the results from Chinese listed companies with those from the US, Europe and Japan. Further, we broke down the data into various categories, in an attempt to capture the core and developing trends of listed Chinese companies. In general, we found the profitability of Chinese listed companies was not that much lower compared to its international peers. The A-shares seem to have better margins than Hong Kong listed companies. However, there seems to be an alarming trend of decline in ROE amongst the A -shares, and to some extent the B-shares as well. This reflects the view that Chinese executives are not managing their equity bases well after proceeds are raised. Typically, Chinese executives want to hold on to as much equity as possible and sometimes tend to spread their resources beyond the core businesses of their own companies without proper returns, lowering the efficiency of shareholders’capital. The net income margins of the Chinese companies are substantially higher than their