Asset Restructuring Of Listed Companies In China, The Empirical Research

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 Although the companies get listed, they are controlled under outdated systems, and cannot operate successfully.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. Listed companies expect that it could improve the governance system and management. 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 15 listed companies. The result shows that the assets reorganization in 2000 has few durable positive effects on these companies. Much more efforts should be made into asset reorganization.