Research On The Performance Of Asset Restructuring In CNNC TD

In China,with the establishment of stock market,listed companies start to reconstruct.Reconstructions of company have good effect on the promotion of listed company quality,the update of industrial structure and improvement of stock market.With the development of Chinese national economy and the process of urbanization,infrastructure,auto mobile,construction industry and real estate are growing.These industries have great demand on some basic industrial product such as titanium dioxide.However,there are so many small and medium-sized manufacturing enterprises and they are not always have relations,which limit the development of the industry of titanium dioxide.At present,the industry of titanium dioxide has been in the normal development time of changing the structure of supply.And some companies are eliminated.The quick speed of company reconstruction gives the chance of development of titanium dioxide industry which is also the inevitable choice.But throughout the cases of reconstruction at home and abroad,so many cases with negative results.And also many researchers have spent much time to deal with reconstruction,but without unified conclusion.They argued in whether company reconstruction can have positive effect of company performance.In this paper,we used event study,method of comparative analysis and case study.And tracked the performance of reconstructed companies for 9 years.With the case study,this paper proposed some effected advises for the reconstruction process of titanium dioxide industry.This paper used normative study and case study to analyze the reconstruction of CNNC TD and its impact on performance.In the part of normative study,this paper sated the background and meaning.And recalled some documents on the influences of performance by reconstruction and the performance result after reconstruction.This paper recalled the definition of concept of reconstruction and performance.In principle,the theory of learning efficiency,market power,signal transmission and financial redistribution are used in the whole paper.In the part of case study,this paper chose the CNNC TD as the research object which is the leading company in China.The reasons why this paper study the basic situation,reconstruction process of CNNC TD are as followed.(1)poor business conditions and poor solvency;(2)big variance in raw material market price and poor corporate anti-risk ability;(3)low titanium dioxide industry concentration and small-scale production companies.At the same time,this paper focused on the market performance and financial performancebefore and after the reconstruction in CNNC TD.In the area of performance study,the methods are different at home and abroad.In Europe and America,their capital markets are more mature,and the foreign researchers always combine the event study and financial index evaluation method to analyze the long-term performance of reconstruction.In China,because of the inefficient of stock market,the Chinese researchers will use financial index evaluation method at most.This paper combined the two methods to do analysis.This paper used average price change method and cumulative excess return method of event study to compare and analyze the trends of the market performance before and after the reconstruction.And the results shows that in the short term,the market has positive impact on the reconstruction of CNNC TD.With the use of financial index evaluation method,this paper compared and analyzed some indexes computed by financial data.And the results shows that after reconstruction,CNNC TD has a good tendency on profitability,solvency,operational capacity and development capacity.Moreover,according to the financial affairs and the reaction of market performance,found and analyzed the reasons of this change are as followed.(1)the positive attitude towards the corporate management philosophy enhanced the company competitiveness;(2)multi-region industry layout after reconstruction with GOLD STAR TITANIUM DIOXIDE,multi-advantages complement with each other and large-scaled production which promote the production sales;(3)special funds of government;(4)industrial associations increased the threshold of energy consumption access and the introduction of new standards witch effectively reduced business competitors;(5)after the reorganization,the industry become better as a whole which provides a good market environment for the titanium dioxide industry.And then this paper summarized the experiences to provide constructive advises for other companies in reconstruction.According to the case study of reconstruction of CNNC TD,this paper concluded that(1)after reconstruction,the financial affairs have been improve as good as it is;(2)The effective integration of resources is the key to the reconstruction of CNNC TD and(3)external factor such as government funds is necessary.After conclusion,this paper had some inspirations:(1)reconstruction is the inevitable trend of titanium dioxide industry;(2)due to the plasticity of the production process of titanium dioxide,it is necessary to increase the investment of scientific research personnel and funds;(3)before the reorganization,it is necessary to confirm the target of reorganization,carefully select the appropriate restructuringobject and the way of reorganization;(4)choose the appropriate timing to do reconstruction and grasp the chance in time.The rest of the company in the industry can be reorganized more smoothly in the future.