The Empirical Research Of Relationship Between Types Of Assets Restructuring And Performance

With the worldwide economic united, the competitive between the companies become hotly, so the company should adjust the unconscionable allocation of resources and structure and assets restructuring is an important measure for optimization of resources for a company. Especially since ST (Special Treatment) system was carried out by CSRC (China Securities Regulatory Commission) in 1998. More and more ST companies have joined in the activity of assets restructuring in our security market, in order to improve companies' performance by integrating own resources. Whether asserts restructuring has a positive effect on the financial condition of ST companies and promotes shareholder value of ST companies. And do the different types of assets restructuring for promoting companies'performance have difference? There is no consistent opinion among academic community.In this paper, we choose the assets restructuring by controlling shareholders implemented within the same year of the first listed ST companies by CSRC during 2005-2007 in Capital Market of China as sample and focused on the study of relationship between the major types of assets restructuring and companies'performance. Firstly, we will introduce the major types of assets restructuring:Mergers & Acquisitions, assets replacement, assets divestiture and stock right transfer. We summarize and analyze the former research fruits according to the study of relationship between the types of assets restructuring and performance, clarify the motive and significance of this study and define its topic by analyzing the current internal and external situation of the performance of assets restructuring of listed companies and introduce relevant theory. Secondly, it is the body of this paper. It designs the empirical research on types of assets restructuring and performance on the whole, including research methods, choosing samples and sourcing. After that, we do an empirical research on the relationship between types of assets restructuring and performance of ST companies by using the various statistic methods such as financial index and event analysis. Thirdly, the main conclusions are drawn as following:The assets restructuring by controlling shareholders implemented within the same year can improve the performance of ST companies as a whole, However, it is. obvious difference in performing ST companies continuously for different types of assets restructuring:replacing is the best type for promoting the continuous performance from the accounting perspective, replacing and stock right transfer are the best types for promoting the continuous performance from the Capital Market.In this paper, we analyze the problems on relationship between types of assets restructuring and performance and bring up practical and effective countermeasures and suggestion in order to summarize the practical meaning of this paper and emphatically point out the further research.