Empirical Analysis Of A-share Performance Of Asset Restructuring Of Listed Companies

Restructuring is an eternal issue for public enterprises and the capital market. Restructuring not only helps the capital market to realize optimal resource allocation, but also helps listed companies to improve their operating strengths and market competitiveness. During the recent years, A-share market has experienced an increasing amount of restructuring activities, while at the same time, encountered some problems. This thesis conducts an empirical research on the restructuring performance of A-share companies, in order to find out the answers to the following questions:(1)Have restructuring activities so far indeed improved public companies' performance significantly? (2)What are the factors that influence the restructuring performance? (3)How to improve the restructuring performance?This thesis starts with a comprehesive review of restructuring theories and empirical research. On the basis of previous study, the thesis discusses the concept, categories and motivations of company restructuring and adopts an appropriate empirical study method according to the characteristics of Chinese A-share market. This article also establishes a financial ratio system which covers the companies' profitability, operating efficiency, repayment capability, growing momentum and cashing ability.As the main body of this article, A-share companies which have completed restructuring events in 2006 are selected as the empirical research sample. The comparison of financial ratios shows that restructuring effect is not significant on the whole. In addition, restructuring types and related transactions activites have great impact on restructuring performance. This study analyses the underlying reasons of restructuring inefficiency in view of Chinese capital market features and institutional regime. Recommendations to improve restructuring efficiency include establishing a sound legal system, strengthening government regulation, advocating substantive and strategic restructuring, inproving restructuring integration, and supervising related transactions.