Profitability analysis of Chinese listed firms: 1992-2004

Abstract

This research collects and analyses the profitability data of Chinese listed companies from 1992 to 2004. Results show that, on average, the profitability of Chinese listed companies has declined over the period. Post-IPO earnings also exhibit a downward trend. A further analysis reveals that changes in listed firms' profitability ratio follow a strong mean reversion pattern. © Higher Education Press and Springer-Verlag GmbH 2008.