Performance Evaluation Of Asset Reorganization In BOWAY

After a long-term development and growth,private enterprises gradually changed from relying on self-accumulation and expansion to restructuring with mergers and acquisitions and equity transfer as the main form to improve economic efficiency and expand the scale of enterprises.Regarding the reorganization in the capital market,most listed companies have achieved the effect of optimizing resources.But there are also many listed companies have increased the financial burden of enterprises due to improper restructuring.The expected results have not been achieved,but still,many companies have tried to carry out restructuring through illegal transactions and manipulation of stock prices in order to infringe the interests of small and medium shareholders,therefore,it is necessary to study the effect and impact of assets reorganization of listed companies.This article will be based on the case of Boway acquisition of its subsidiary,using the event analysis method,financial indicator analysis method,non-financial indicator analysis method,and EVA analysis method to analyze this major restructuring.The event analysis method is used to study the long-term and short-term stock price performance of the case.It is concluded that the restructuring of Boway has not brought positive market response to the enterprise in the short term.But from the medium-term stock price trend,the restructuring has brought bright effect and the long-term growth is weak.Comparing the performance of Boway financial indicators before and after the restructuring through the analysis of financial indicator analysis methods,it can be seen that the enterprises have significant changes in profitability and operating capabilities.Through the analysis of non-financial indicators,it can be seen that the company’s research and development capabilities have improved to a certain extent,and the level of social contribution has been improved,but the ownership structure has not been substantially improved.Finally,by using the EVA analysis method,it can be seen that the economic value added of Boway after restructuring has greatly increased compared with the previous one,and it has maintained a growth trend after reorganization.Judging from the medium and long-term trends of various indicators,they have mutually confirmed that the current restructuring of Boway has brought a more positive impact on listed companies,but there are also some notable issues.Chapter 5 of the article is for The problems reflected in the case are elaborated and analyzed.The short-term market performance is poor,and the performance of performance commitments is not as expected,and detailed analysis is made.In Chapter 6,two related points are put forward on the restructuring and subsequent development of listed companies Suggestions,and summarize the enlightenment brought by the case and the full text.