Can Assets Reorganization Improve Enterprise Performance Continually?

Material assets reorganization is defined as listed companies' transaction in assets outside daily business activities that lead to drastic change in companies' main business,asset or income.Material assets reorganization is the important way to facilitate the flow of resources and improve asset allocation.Meanwhile it can promote enterprise's sustainable development ability and industrial upgrading.Despite its rapid development,there are still various dangers and drawbacks,like tunneling,insider trading,bid up the share price.Can Assets reorganization improve enterprise performance?Is this effect sustainable?What kind of assets reorganization can improve enterprise performance continually?These are all the research focus of this paper.First,using data consisting of 67 A-share listed firms which completed the material assets reorganization over the period 2010-2015,this paper examines the change of enterprise performance before and after the reorganization.In addition,classify the samples by the modes of reorganization,the goal of reorganization,nature of enterprise and industry attributes to make the subgroup test.Secondly,this paper defined enterprise performance change as the mean change of performance indicators before and after the reorganization and then examined the effect of reorganization depth,control transfer dummy variable,related transactions dummy variable,performance commitment dummy variable,special treatment dummy variable,property rights,ownership concentration and industry character on this change.The result suggests that the material assets reorganization can significantly improve enterprise performance in the short term,and maintain the performance after a period of time.Moreover,there are differences between different reorganization.Business transformation is better than horizontal integration and vertical integration.State-owned enterprise is better than private enterprise and traditional industry is better than emerging profession.Furthermore,control transfer and ST situation have a positive impact on the improvement of enterprise performance,however,reorganization depth has a positive negative on the improvement of enterprise performance.