A Research On ST Companies' Restructuring Performance

Corporate restructuring is the core of corporation's capital operation and the focus of the security market theory. In the past several years, worldwide scholars have studied merge and acquisition of listed companies widely and deeply. Along with the development of China's securities market, listed companies have gone through an uncommon developing road. At present, corporate restructuring in China has reached a certain scale in term of the number of restructure and the amount of the transaction. Different kinds of restructuring listed companies are also emerging. In addition, China's economic adjustment, development of the national economy and the reform of state-owned enterprises are closely related to corporate restructuring. As a result, the study of Chinese corporate restructuring had an extremely important issue of practical and theoretical significance. Especially since ST (Special Treatment) system was launched by China Securities Regulatory Commission in 1998, an increasing number of ST companies has carried out the restructuring and tried to integrate their resources to improve their performance. However, current research has not been reached agreement on that whether restructuring can increase the shareholder's wealth of ST companies or improve the companies'financial situation. This paper aimed at ST companies'restructuring performance, objectively and fairly evaluated the ST companies'restructuring performance and gave some comments and suggestions.In the paper, the author studied the restructuring performance of ST companies from two aspects: theory and empirical. The article was mainly divided into three parts: The first part mainly stated purpose and significance of the research, summarized domestic and foreign study about company restructuring, defined the content of this article, and introduced theory both company restructuring and performance. The second part is the main part of this article: it designed the empirical research on performance of company restructuring on the whole, including research methods, data sources and sample selection. It also chose 79 ST companies which was restructured from 2003 to 2005 as research sample, using the incident analysis and financial analysis to study and test its performance, mainly concluded that as follows: Overall, the restructuring can improve ST companies'market performance and financial performance; The performance of different restructuring types varied considerably; ST companies'performance improvement can not keep for a long time. The third part analysed the restructuring problems according to the research above and put some forward suggestions.The paper limited its research scope in ST companies'restructuring in China's capital market, through the empirical study revealed the performance of its restructuring performance. At the same time, it combined the methods of incident analysis and financial analysis, which built regulatory framework for restructuring performance of ST companies in China.