Research on the Relationship Between Reduction of State-Owned Shares and Enterprise Value—the Empirical Data from a-Share Listed Companies of China

Reduction of state-owned shares is in an important measure in the process of deepening the reform of enterprises. Whether the reduction is realized enterprise value appreciation, remains to be more evidence. So far, views of the relationships between the proportion of state-owned shares and enterprise value are actually inconsistent. It’s still hard to give the final conclusion of the impacts on the enterprise value, which brought by the reduction of state-owned shares. This article selects all the A shares of Shanghai & Shenzhen stock exchange, which proportion of state-owned shares has decreased greater than or equal to 5 % one-time since 2008, and after reduction the proportion is still greater or equal to 50 % of the listed companies as samples. Using standard event study method to analysis cumulative abnormal returns of the 71 sample enterprises. But the results did not support the positive effect of reduction of state-owned shares.