Empirical Research On The Relation Of Motivation Of Assete Reorganization And Effect Of Chinese Listed Companies

Assets reorganization can vitalize the restored assets, advance the allotment of resources, adjust industrial structure, renew proprietary entity, improve interior management system, impel the smooth development of the stock market and better a series of goals of national macro economy. As China'entering into WTO, economic development and further adoption of the market principle, China's companies will have to confront market competition on a higher level. Assets reorganization becomes companies'most important method for self-improving. Nowadays companies, out of different motives and through various ways, are frequently reorganizing. And the sequent effects are different. Focusing from reorganization motive, the thesis aims to research China's listed companies'problems of assets reorganization'effect and its existence.In the thesis, assets reorganization consists of M&A, stock transfer, assets exchange and divestment. The article has put forward several reorganization motives, such as pursuing scale economy, adjusting industrial structure, emphasizing core business, broadening financing channel, diversifying operation and etc. in accordance with the features of China'assets reorganization. Besides, the article also analyzes the effects of reorganization motives in theory, setting a solid foundation for empirical analysis.From the listed companies before Mar. 1st 2006, I sample 141 companies, which have clear reorganization motives and comply with the requests of the thesis. Classifying according to different motives, three major motives, such as adjusting industrial structure, pursuing scale economy, emphasizing core business are selected for empirical analysis, which are undertaken by Principal Component Analysis. The financial effects of companies'reorganization are instructed in the field of profiting ability and operating ability. The result shows none of the effects have improved apparently but the profiting ability out of the adjustment of industrial structure. Judging from this, we can find out that there are many problems, such as improper motives, wrong strategies, unreal reorganization etc. in the process of China's listed companies'assets reorganization.