The Effect Of VAM On The Major Asset Restructuringt

Trading price is the most important in the Major Asset Restructuring,and the fair price will largely affect the success of the merger and the acquisition.Now more and more companies would like to use the VAM in the Major Asset Restructuring because of its usefulness.According to incomplete statistics,there are 30 Major Asset Restructuring in 2012,while it increased to 78 in 2014.The China Securities Regulatory Commission issued Measures for the Administration of Major Asset Restructuring of Listing Corporation in 2014,which suggested to sign the value adjustment mechanism if there is big difference between real earning capability of assets with the excepted earning capability of assets with the excepted earning capability.To a certain degree,the value adjustment mechanism could help to solve the price disorder,weaken merger asymmetric information,protect the interests of minority shareholders and other issues.The paper is intended to explore the incentive effect of VAM with the data of Major Asset Restructuring from 2012 to 2014.The paper is going to analyze the different affect between transactions with VAM and transactions without the value adjustment mechanism in other to know how VAM inspire the shareholders to work harder.At the same time,the paper will show how the different kinds of articles affect the result.Through theeoretical analysis and empirical correlation,the paper will draw the following conclusion:the performance of Major Asset Restructuring with VAM is obviously better than others,which means VAM has its incentive affects.Shareholders with VAM to work harder to enhance security after transaction.However,the classification of gambling agreements is classified according to different compensation methods,and it is found that there is no obvious correlation between different compensation methods for the reorganization and reorganization of major assets.Although the VAM is relatively popular in the modern society,especially in Major Asset Restructuring,academic researches on the value adjustment mechanism are rarely.Empirical evidence in this paper show the positive effect of VAM.At the same time,this study leads more research about the meaningful topic in the society.The conclusions of the paper provide some inspiration and reference in the future.