Is The Market Reaction To Major Asset Reorganization Events Consistent With Subsequent Changes In Financial Performance?

In assisting enterprises to develop large scale,reduce the cost of the industrial chain,and enhance their operating capabilities,asset restructuring has been used as an important tool for listed companies.In recent years,the reorganization of total assets of listed companies in our country has been active.In 2016,the total number of M&A transactions of listed companies in China reached 200 billion yuan.Asset reorganization can quickly help companies improve their competitiveness.For example,through horizontal integration within the industry,companies can gain more market share;through a vertical integration within the industry,they can help companies to open up multiple links in the industry chain,which can help companies save unnecessary costs;and through A diversified M&A can help companies acquire new industry technologies,talents,and markets,so as to obtain a new growth point.If the integration is successful,even an unexpected synergy of industrial convergence can be achieved.Therefore,more and more listed companies are keen on reorganization of assets.In addition,since China's capital market is relatively late in comparison with developed countries,and most individual investors are also relatively immature,some listed companies hope to obtain a short-term stock price increase through the concept of asset reorganization,but they do not care about the success of long-term integration.However,asset restructuring is not without risks.Throughout the entire process,the judgment of the reorganization target and the subsequent integration have played a very important role in the success of asset reorganization.For example,the failure to make judgments on the reorganization of the target may result in the later integration having no effect at all.However,even if the judgment of the restructured target is correct,the subsequent integration will encounter many difficulties and challenges.For example,after the reorganization of assets,whether the cultural and human resources of the purchaser and the target company can be integrated and whether there will be a critical talent Loss;In addition,the development and changes of different industries are unpredictable.Although effective judgments can be made according to the circumstances before the integration,this does not mean that the environment for future integration will remain unchanged.Therefore,the success of asset restructuring is not absolute.In this paper,the research on the market reaction of asset reorganization and the subsequent changes in financial performance are consistent.The main conclusions are drawn through two research methods and proved.First,through the incident research method,a listed company with a major asset restructuring event from 2013 to 2017 was selected as a sample.The selection of samples mainly focuses on the scale,that is,the selection of major asset reorganization,and also the selection of the latest sample data as much as possible to ensure the timeliness of the research results.Through the incident research method,the market response of listed companies after major asset reorganization can be obtained more accurately.The observation indicators are mainly the two indexes of excess return and cumulative excess return.Then,in the process of subsequent changes in financial performance,this paper selected a sample for the entire year in 2013 and 2014,and obtained comprehensive scores by using the principal component extraction method from nine representative financial indicators,and then through observation and comparison of the previous asset reorganization.A period of time of three years and five years after the reorganization of the assets was used to study the degree of changes in the financial performance of these listed companies.The research results show that the market reaction caused by major asset reorganization events is generally positive,but there are also certain differences according to the types of asset reorganization.The overall financial performance after asset restructuring has a certain degree of decline in the short term,but in the long term,the positive changes in performance are not significant compared with the previous year,and the performance changes of different types of asset restructuring and the previous The investors' responses are not consistent and even have certain differences.