A Research On The Asset Reorganization Performance Of Military Industry Listed Companies

The establishment of the Aviation Industry Corporation of China on Nov 6th, 2008 provided the prologue to the specialized integration of Chinese military industrial Groups. On the platform of listed companies of military industrial Groups, the specialized integration promotes the realization of overall listing of military industrial Groups through the asset reorganization as its major approach. With the issue of"No. 37 file"in the end of 2010, the time schedule of implementing the shareholding system reform was fixed, which accelerated the asset reorganization of listed companies of military industry in an unprecedented scale and speed.The research object of the thesis is restricted to 58 A-Stock listed companies of military industry. Based on annual reports and related statistical announcements of these companies during 2008 and 2010, the study summarizes 98 reorganized assets so as to analyze the performance of asset reorganization through the integrated scoring model, which is established by means of the factor analysis in Statistics. The results of the empirical research are as follows: Firstly, the whole performance of the listed companies of military industry has been improved since the asset reorganizations, and the performance of a single company in the year of asset reorganization is more obvious than in the following year. Secondly, the level of the listed companies'performance, which reorganized assets in three consecutive years, declined by small margin in 2009, and then came back to the original point. Besides, distinct performances have been achieved by the listed companies that have carried out significant asset reorganizations.The major factors that restrict the asset reorganization of listed companies of military industry from achieving a better performance mainly lie in the strategic decision of asset reorganization, the price-making of target asset, the simplification of means concerning financing and payment, and the improvement of related laws and regulations, etc. As for the price-making of target asset, the study analyzes the behaviors of asset appraisal institutions and listed companies by taking advantage of the signaling game model. The study finds that the powerful position of contemporary asset appraisal institutions may not only cause the listed companies pay a large amount of fees for evaluation, but also increase the possibility of purchasing target companies in low-quality with high price. At last, based on the above analyses, the thesis provides some practical suggestions from the perspectives of the government's guidance and supervision, the choice developing strategy, the plan designing of asset reorganization, and the enhancement of asset reorganization's performance.