| Recapitalizing is an important means for enterprises to optimize their assets allocation and enhance their competitiveness and has been widely focused on by capital markets and academia.With the continued perfection of Chinese capital markets,recapitalizing in the listed enterprises has become increasingly frequent.More and more listed companies hope to be more competitive by recapitalizing.Combining with the lifecycle of some enterprises,this essay studies the impact of recapitalizing methods on their performance.First,this essay uses multi-factor approach,selecting increase rate of business revenue,increase rate of total assets,dividend payout ratio,enterprise age,rate of capital expenditure to build the refining model of enterprise's lifecycle.Second,this essay refers to a large number of documents and at last utilizes 12 financial standards to build a performance evaluating model from four perspectives: the ability of debt paying,growing,earning and operating.Finally,through SPSS statistical software,it conducts pair T test,mean value test and multiple linear regression to verify the hypothesis of the essay.Studies have shown that recapitalizing does not evidently increase an enterprise's performance so mergers and acquisitions are harmful to enterprises in the long term while divestiture will bring positive effects to the enterprise.This indicates that there are many irrational mergers and acquisitions in our national capital market.Second,reorganization doesn't work for a growing enterprise,particularly,mergers and acquisitions will only bring disadvantages to it.In addition,recapitalizing appears to be more of a method for mature enterprises to maintain a constant income.Finally,this essay strongly proves that recapitalizing as a whole is good for the performance of a declining enterprise,mergers and acquisitions will only have influences in a short period,while assert divestiture can improve enterprises' performance in the long run. |
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