Analysis On The Effect And Reason Of The Loss-Making Enterprises Using The Restructuring To Improve The Operating Performance

Loss-making enterprises always focus on improving their business performance.With the improvement of the stock market exit mechanisms,loss-listed companies tend to improve performance to keep the listing status.Measures to improve the performance are various but the effect of each measure is mixed.This paper focuses on the assets restructuring of loss-making enterprises,to explore whether it can improve the long-term and short-term performance and what are the main factors influence performance.Base on the conclusions of this problem,I make suggestions for improving the performance of loss-making enterprises.The paper can also provide a theoretical basis for investors and stakeholders in investment decisions.The sample of the research is ST or ST * companies which recapitalized in 2010 to 2012.We focus on both the short-term and long-term business performance of the sample by using event study method and multiple linear regressions to research the subject.On this basis,we found that assets restructuring significantly improve the short-term and long-term performance of loss-making enterprises.From the perspective of short-term business performance,we found the impact of major assets reorganization or correlated asset restructuring is more significant than normal or non-correlated reorganization.From the perspective of long-term business performance,the reasons why performance was improved by reorganization is the lifting of ownership concentration,while tunneling and other variables had a negative impact on business performance.