Analysis On The Motivation And Performance Of Shell Company's Reorganization

With the continuous expansion of the capital market and the increase of capital operation mode,major asset restructuring has become one of the most important ways to optimize resource allocation in China's capital market,at the same time,it also has become a hot topic in academic research.However,major asset restructuring has brought some problems to listed companies and related investors.This paper analyzes the motivation and performance of listed companies' major asset restructuring through study the case of The Culture of the World,and proposes relevant suggestions to making some contribution to solving the problems of major assets restructuring of listed companies.This paper takes the Culture of the World as the research object,studying the motivation and performance of reorganization of listed companies.Using literature research method,case study method and comparative analysis method,based on theory and literature,this paper analyzes the motivation and performance of the company's reorganization,analyzing the financial indicators,industry indicators and the impact of stock price.Through the research about this company's industry and five major asset restructuring processes,it is found that the company's enthusiasm for major asset restructuring includes the high shareholder's high-profile reduction,the virtual increase of the company's goodwill,and the manipulation of corporate profits.In the ten years after the successful backdoor listing,the Culture of the World carried out five major asset restructurings frequently,but the effect was not satisfactory,and eventually became a shell company,which also had a negative impact on enterprises and other stakeholders.Finally,through the case study of the Culture of the World,this paper also puts forward relevant suggestions including reviewing the reorganization target carefully,correcting reorganization motivation,Avoiding blind asset restructuring,improving profitability radically and strengthening the impairment test of regulated goodwill.