Research On Asset Restructuring Performance Of China's ST Companies Based On Entropy Weighted TOPSIS Model

With the rapid development of China's financial market,China has developed the ST(Special treatment)system for the further development of China's securities market,which is a transition stage of the delisting mechanisms in China's stock market.ST companies often choose asset reorganization in order to be uncaped as soon as possible.There are many methods of restructure asset which mainly include acquisitions,mergers and acquisitions,transfer of shares,debt restructuring and divestiture of assets.As for the performance of asset restructuring,the equity acquisition and equity swap is relatively better,and the performance of the asset restructuring of the agreement acquisition is the worst.In recent years,entropy weight method TOPSIS shares more and more concern as the methods of performance evaluationAs a kind of objective weighting method,the entropy method can weight each index determined according to the matrix data.It can effectively avoid subjective randomness of human judgment,and reach a more objective and reasonable result.The TOPSIS model is a kind of comprehensive evaluation of Multi-objective decision-making.It can reflect the overall similarity between the evaluation scheme and the ideal scheme through the function curve.As a result,it can reflect the gap between different programmes objectively and realistically.Th is paper selected 16 financial indicators from the profitability,solvency,operation ability and growth ability.We collected the corresponding data from the WIND database,and used MATLAB to calculate the performance scores of each object and its ranking.The empirical results showed that there are contradictions between the short-term performance and long-term performance of the ST company assets reorganization.During the process of assets reorganization by ST companies,financial performance can be significantly improved in the short term,but it can not improved fundamentally in the long run.In the further study of the short-term market performance of asset restructuring of ST companies,we studied the market reaction by event study.We compared the changes in the excess return before and after asset restructuring by different ST companies.On the whole,the news of asset restructuring of ST companies were leaked in advance usually a week ahead.The news of equity replacement asset restructuring leaked earlier,which is a month ahead of the obvious trend.