Performance Appraisal Of Listed Company's Asset Reorganization

Asset reorganization is an important means for enterprises to adjust resource collocating. With the acceleration of globe economy becoming a whole body, the competition between enterprises is becoming more vehement. In order to improve strength, enterprises must adjust the resource collocating and structure not in reason. So, in the last years, the cases of asset reorganization in China increased. Especially in securities market, the amount of companies carrying through asset reorganization became more and more, the reorganization frequency became faster and faster. And asset reorganization is becoming more important. The asset reorganization of listed companies has become a very important topic in domestic science field.Most of the enterprises in the country pay much more attention to the function of financing when they plan to get listed, ignoring the reorganization of governance systems. Although the companies get listed, they are controlled under outdated systems, and cannot operate successfully. In order to improve these companies, asset reorganization is adopted to better the reform and resolve related matters.In addition to listed companies, the government and other related parties expect much from assets reorganization. The government expects that it could adjust industry structure and normalize capital market, remedy the positioning for markets and quicken the joint of internationalization to world market. The investor expects it could have more choices in investment portfolios.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 positive research.With reference to the existed research results, this paper analyzes the effect of assets reorganization on profit and operation of 100 listed companies, and make performance appraisal of the process of asset reorganization. The method of principal components analysis is used in this article. The result shows that the assets reorganization in 2002 has few durable positive effects on these companies. Much more efforts should be made into asset reorganization.