Delisting Pressure, Government Intervention And Corporate Restructuring

As the development of Chinese capital market,the delisting system has experienceda process of gradual development and perfection.While compared with foreignwithdrawal mechanism, the development of delisting system in our country has someflaws.Among them,as the core system design of transition delisting mechanism-SpecialTreatment（ST for short）,which is one of the important system innovation under thebackgroud of our capital market.As part of the market supervision system,the operationof delisting system is based on the target of the healthy and sustainable developmentcapital market Article mainly launches the research from the following aspects:(1)Weanalyze the delisting and picking hat of listed companies,combining the presentimplementation situation of American delisting system,with which we compare thedifference of our market delisting system.We found that two groups companies havesignificant difference in company size, asset-liability ratio, return on total assets andreturn on net assets,that is to say,the companies which have picked cap have a betterfinancial situation than thoses which haven’t picked cap yet.Then,We examine thereason why the companies get special traetment and the proportion of each part toreflect emphasis of our delisting system in design.(2)We examine the restructuringbehavior and the government intervention of ST companies during the period of thespecial treatment, to further analyze the reason of ST companies picking cap.This partmakes use of debt restructuring accounting in new accounting standards as abreakthrough point,analyzing the differences of company’s debt restructuring behaviorbefore and after2007.(3)Through logistic regression analysis method,We analyze thekey factors significantly governing whether the companies can pick cap or not.Wefound company background, company size,financial leverage and the proportion of thefirst largest shareholder significantly affect company picking cap,while themarketization index and profit-earning ability of ST listed companies haven’t passed thesignificance test.(4)The performance of ST listed companies still widely gets worse yearby year aftter the special treatment has been revoked between2005-2008,so they don’treally realize the ascension of their own profitability.(5)Under the backgroup ofdelisting system reform,we examine restructuring behavior and market reaction of STcompanies.In view of the new delisting rules of2012,we examine the restructuringbehavior and market reaction (share price) of50picking cap companies from January toAugust in2012.Results show that34companies receive government subsidies in thefirst half of the year.While after the continuing20deals in the future,31companies’stock prices decline,it indicates that investors gradually return to rationality.The article may have innovations:(1)According to the companies whether pick cap or not,we divide the companies into two groups,examining their restructuring behaviorduring the time when they get special treatment.Results show that the picking capcompants are more likely to take merger and acquisition actively.while other companiesare busy in stripping,asset replacement and other measures.(2)Contrary to the previousresearch,during the process of ST companies revoke special treatment,we enrich thestudy of the ST company by introducing the marketization index variable.(3)We seeyear2007as the watershed,when business enterprises implement the new accountingstandard,we study the characteristics of companies choosing debt restructuring beforeand after year2007.Study find that companies rarely use debt restructuring strategybefore year2007,while the proportion of companies engaging in the debt restructuringbehavior increase significantly after2007.