Research On Timing Disclosure Strategy Of Reorganization Of Listed Companies

With the development of securities market,merger and acquisition has been known as a mean for companies to expand business scale,optimize the resource allocation and readjust the industrial structure.The pricing of purchased assets,the method of payment and the timing of the purchase are key elements to a successful merger and acquisition.The regulatory agencies constantly improve the rules for information disclosure of asset reorganization.In spite of this,relevant regulation still leaves scope for listed companies so that listed companies can choose favorable time for reorganization information disclosure.The approach taken in this paper is multiple case study.This paper selected 9 reorganization events of 4 Chinese listed companies as the cases to explore timing disclosure of reorganization of listed companies.The study found that,whether the reorganization involves related parties can cause different timing disclosure strategies.Listed companies whose reorganization involved related parties prefer to have its shares suspended when the stock market is getting in recession and the stock price is low,and release bad news before stock suspension or delay disclosing good news.If the transaction don’t involve related parties,companies prefer to have its shares suspended when the stock market is getting in boom and the stock price is high,and release good news before stock suspension or delay disclosing bad news.Companies whose main shareholders has their most of shares pledged prefer to have the shares suspended when the stock market turns down and the share price falls.As for resumption time,all of the companies tend to choose the time when the stock market runs smoothly and the earnings information is good.The timing disclosure strategy of reorganization without related parties makes share price perform better.This paper enriches current studies on timing disclosure.It remains investors to regard the reorganization information rationally,and provides theoretical basis and empirical evidence for improvement of relevant regulations.