Finance Asset Management Corporation Equity Reorganization Performance Research

In order to reduce the finance risk, enrich the monetary power of commercial banks, and strengthen their reputation so that the impulsion caused by the entry of WTO could be offset, and the deflation of macroeconomics caused by the Non-performing asset of banks, our country transferred Non-performing assets valued 130 billion RMB from all of the four wholly-state-owned commercial banks and China Development Bank to establish specialized finance assets management corporation to handle.Since the establishment of assets management corporation in the end of 1999, shares which involved more than 600 enterprises from about 20 industries, and valued 400 billion RMB have been obtained in accordance with the government policies and self-determination. Presently, it's one of the most important objectives of the management corporations to keep and increase the value of the shares. And it is extraordinarily important to increase the shares value though equity reorganization during the last two years.Simultaneously, with the development of the fifth global tide of enterprises M&A in the last 10 years of 20* century, the theoretical research of enterprise M&A in the world scale provide good reference for the equity reorganization of the assets management corporations. Especially after the eighties of the 20th century, performance test of equity merger and acquisition has been focused by the local and international theoretical researcher.The topic of this article is to study the equity reorganization performance test of the finance assets management corporations in the way of analyses and comparison. Appropriate criteria will be selected to appraise the equity reorganization of the finance assets management corporations, then the conclusion on how to increase the share value though equity reorganization could be drew after the demonstration analysis in the two sides of financing and non-financing index.Firstly, I review the basic theory about assets reorganization and value creation, and I believe the theory of organization capital transfer could reasonably explain various circumstances of M&A.Secondly, the condition, cause and categories of the equity reorganization of the finance assets management corporations are analyzed to arrive at the importance of the objective and performance test of equity reorganization. When analyze the cause of reorganization, different characteristics of the shares hold by the finance assetsmanagement corporations including ratio of equity return, industries belonged to, and equity structure etc. are researched and the causes of reorganization are discussed, types of reorganization are summarized.Thirdly, the methods for the appraisal of reorganization performance test are discussed, and appropriate way is certified focused on the characteristics of equity reorganization of the finance assets management corporations. I optimize the chosen financing index appraisal system due to its inefficiency, and cash flow is considered in the index appraisal system so that the analyze of concrete cases will be much easier.Thereafter, four non-financing index factors are considered in their influence on the equity reorganization performance test. The object selected is the unitary condition in he first phase of equity reorganization of the finance assets management corporations, the influence of non-financing essence factors on the performance test of the enterprise before and after obtaining the shares is considered specifically.Finally, the conclusion is drew on the basis of demonstration analyze of concrete project though the chosen financing index system. Firstly, among the non-financing factors, the improvement of capital structure caused by the reorganization is prominent, while the influence of the change of equity structure and corporate governance on the reorganization could not be proved. Besides, different industries have different influences on the reorganization performance test, and the reorganization of enterprises in the more profitable industry is much easier to be successful. S...