A Positive Study On Restructuring And Reorganization Of Listed Company

In these years, as a method of resource reallocating, Restructuring and Reorganization activities of listed companies are very active, and it has been an important component of our national economic activities, many scholars of western and domestic have done many researches by using financial data or stock prices, Although western scholars have done a lot of studies on this subject and developed some mature research approaches and conclusions, the security market of our country is still at developing stage, and corporate restructurings are quite different from those in western countries, so their conclusions do not necessarily apply to China. Many researches which have been done by domestic scholars are usually quantitative, and they seldom use qualitative analysis in researches, in this paper we combine short-term researches with long-term researches, and then we analysis the effects of corporate restructurings. This paper is organized into five chapters. The first chapter is the introduction of the background and purpose of this paper,and reviews and evaluates domestic and international researches on corporate restructurings. The second chapter introduces the definition and classification of Restructuring and Reorganization used in this paper. In China, the definition of Restructuring and Reorganization is similar with Mergers & Acquisitions, according to the method which is established by usage, we classified the restructuring and reorganization activities of listed companies into 4 groups, they are mergers & acquisitions, transfer of shares, sales of assets, and replacement of assets. In the third chapter we review the relevant mergers & acquisitions theories in western and explain the motives of Restructuring and Reorganization by the major mergers & acquisitions theories mentioned above. The article carries out the empirical research of Restructuring and Reorganization of listed company in China from two angles: 1. we research the short-term effect of corporate restructurings by using event study approach, the short-term research concludes two aspects, one is the fluctuation of exchange volume, and the other is the fluctuation of stock price. We analysis the fluctuation of relative exchange volume and distribute of Abnormal Returns, Cumulative Abnormal Returns around the announcement day. We compare the Cumulative Abnormal Returns from 4 groups around the announcement day by using the compared T-test. 2. We compare the integrative score of different years in order to estimate performance of listed companies, and then we can draw conclusions. In the third chapter we carry out the empirical research. The main purpose of corporate restructurings is to optimize the internal resource reallocating and the corporate governance, maximize the value of corporations, and improve the quality of listed companies, Restructuring and Reorganization activities of listed companies have become a very important topic in domestic science field. How about the effects of the frequent assets reorganization? Can it improve the profit and operation of the related companies? This paper discusses this question from the view of empirical research. In the empirical research, this paper estimates the effect of corporate restructurings from the short-term to the long-term. First, we research the short-term effect of corporate restructurings by using event study approach, the short-term research concludes two aspects, one is the fluctuation of exchange volume, and the other is the fluctuation of stock price. Through the research we find that the stock market receives much information during the announcement day, the information leads to the fluctuation of exchange volume. In China stock market, Restructuring and Reorganization activities have positive effect at large,we find that the effects of transfer of shares, sales of assets, and replacement of assets are similar, they have no difference, but the impact of mergers & acquisitions is quite different, we can draw a conclusion that the impact of mergers & acquisitions in stock market is flat. And then, we analysis the impact on operation performance and financial situation of restructured companies, we construct a general function that could weigh the enterprises'performance, and reasonably explain the economic meaning of factors. We perform analysis of corporate restructurings and compare the financial effects in different periods. Through this part empirical...