Research On Assets Replacement Performance Of Listed Companies In China's Financial Distress

As the world's largest papermaking country,China has the characteristics of early start and large production.However,due to the lack of progress in technology and production methods,China still does not belong to the papermaking power.In 2012,China's economy was generally down,and the paper industry,like many industries,experienced significant overcapacity.The further release of new production capacity has intensified the contradiction between supply and demand in the market.The oversupply has caused the product price to drop sharply and the profit has been compressed.Fujian Nanzhi Paper Co.,Ltd.is a typical example.Since 2012,under the influence of the industry background,Fujian Nanzhi has also seen a continuous decline in selling prices and sales.In addition,due to the geographical location,the cost of transportation of Fujian Nanzhi is higher.Therefore,under the joint influence of the external environment and internal factors,losses were made for two consecutive years,and finally the Shanghai Stock Exchange implemented special treatment,and the stock short name was changed to "*ST South Paper".This article takes*ST Nan paper as an example.Through the analysis of short-term performance and long-term performance before and after asset replacement,this paper studies the impact of changing the main business through asset replacement,and hopes to remove the cap from the financial distressed company and really get rid of it.Financial distress provides a reference.This paper combines the methods of literature research and case study.Firstly,in theory,it summarizes the literatures of domestic and foreign scholars in recent years on financial distress,financial distressed company asset restructuring,and general listed company asset replacement performance.A conclusion was reached.In addition,in the second part of this paper,the related theories of special treatment systems and asset replacement are systematically elaborated.Secondly,this article introduces in detail the history of*ST South Paper asset replacement.Finally,this paper uses the event research method and financial indicator analysis method to study the short-term performance and long-term performance of asset replacement.In the event research method,we judge the performance of short-term performance by calculating the cumulative excess return rate of*ST South Paper.In the financial indicator analysis method,four indicators such as profitability were selected for quantitative analysis in both vertical and horizontal directions.Through analysis and comparison,it is concluded that*ST Nan Paper's financial performance has been improved after asset replacement.The innovation is that this paper uses the financial distressed company instead of the general listed company as the starting point to evaluate the improvement effect of asset replacement on financial performance.In addition,there have been few studies on the asset reorganization as a specific asset reorganization method in previous studies.Therefore,this paper hopes that through the specific introduction of the case of*ST Nan paper,other companies with similar financial distress can proceed from the process and Seeking commonality in the results.Provide data reference for other companies in financial difficulties to get out of trouble.