Research On The Effect Of Panda Finance Main Business Transformation

In recent years,With China’s stock index rising,main business transformation became popular among the listed company,some companies through mergers and acquisitions of assets and the transfer of the original business assets for the main business transformation.After the transformation of the main business,some companies not only have enhanced the performance and attracted the attention of external investors,but also improve the company’s stock prices,the positive effect brought by the main business transformation is very obvious.While the other part of the company carry out the main business transformation at the time when the SSE A share index rising,but the transformation effects below expectation,not only reduced the company`s financial level,but also reduced the operating result.However,its stock prices rising rather than falling,when the stock price reached a high level,the controlling shareholder begin to hollow out the listed company,seriously damaged the interests of company.In view of the above,this article use Panda Finance as a case study.The first part is the introduction,introduces the research background and research methods,and introduces the problem.Part 2 is theoretical part,introduce the main type of the business transformation and the concept of investor protection.The third part introduce the main business transformation process of Panda Finance.Then,the effects of the business transformation have been analyzed in part 4,the intrinsic value of Panda Finance stock has been greatly reduced.Through use the Z-value model has found that its profitability and solvency have also dropped significantly.The number of investors is also declining after the announcement of the transition.Part 5 analyzes the problems existing in business transformation of Panda Finance.First,management of Panda Finance lack a set of strategies and cost control to meet their own transformation has been found,such as the cost of newly established subsidiaries is too high,the sales costs fast increasing,and there is a loss when transferring subsidiaries of original business.Second,controlling shareholders have hollowed out the company’s behavior in the process of transformation of the main business.Finally,the company’s information disclosure distortion,carrying out false propaganda.This paper gives the following recommendations in Part 6: First,increase the management of business transformation,reduce the cost of transformation,especially in stripping the original assets and creating new subsidiaries,while check the cost of sales at thesame time;Second,a reasonable arrangement of ownership structure should be taken,it can avoid a significant impact on decision-making errors,Thereby further protecting the interests of investors and improving the value of the company.Third,strengthen the company’s infortaomation disclosure mechanism,to strengthen the relevant person of management the study on the disclosure of information disclosure provisions.The innovation of the article mainly lies in the discovery that the effect of the transformation of the main business is not ideal,after further analysis,it is found that the big shareholders have the behavior of tunneling during the transformation of the main business,and the tunneling from big shareholders will have a negative impact on the effect of the transformation of the main business.Then basis on this,proposals are provided to Panda Finance to improve the transformation of the main business,so that the deficiencies can be found in time during the main business transformation of the Panda Finance and improve their company value.