Analysis Of The Causes And Economic Consequences Of CRHIC's Asset Replacement

As a model of asset reorganization,asset replacement is a powerful way to improve corporate assets and liabilities,enhance profitability,and adjust business structure.It is widely used by listed companies in China's capital market.Many researchers say that the asset replacement behavior of listed companies is either to get themselves out of business difficulties,or to reconfigure the overall resources and business of the enterprise group,or both.As asset replacement is not only a reconfiguration of corporate assets and liabilities,but also a reorientation of corporate organization and strategy,the research project on how to achieve a sustained positive effects of asset replacement behavior has a great theoretical significance and practical value.CRHIC was mainly engaged in infrastructure construction business before the asset replacement,its own performance and asset quality continued to decline,and exists competition in the same industry with its controlling shareholder,CREC.At the same time,as a state-owned enterprise,CRHIC has plans to adjust its own business structure and develop high-end equipment manufacturing and rail transportation equipment businesses.In order to meet the needs of every aspects,CRHIC and CREC planned this considerable asset replacement and issuance of shares to purchase assets with raise matching funds.This thesis mainly uses literature research,case research,comparative research,and event research.On the basis of summing up the theoretical achievements related to asset replacement,this thesis comprehensively reviews the asset replacement plan of CRHIC,and explores the reasons of its asset replacement.In order to examine and evaluate the economic consequences of this asset replacement,this thesis observes many financial and non-financial aspects of CRHIC from the perspective of financial performance,business structure,development prospects,and corporate value.Then his thesis summarizes the arrangements and measures that have a significant positive impact on the effects of asset replacement behaviors in CRHIC's asset replacement plan,hope to providing reference for listed companies planning asset replacement transactions and help researchers who study the related behaviors of enterprise asset replacement.The content of this thesis is divided into five parts.The first part mainly includes the research background,the significance of this topic,a review of past research results on asset replacement,the research ideas and main research methods of this thesis.The second part is an overview of related theories of asset replacement.It specifically introduces the definition and main model,theoretical basis,motivations,and main economic consequences of asset replacement,provides theoretical support for the detailed analysis of the asset replacement behavior of CRHIC.The third part introduces the basic situation of the two parties in the asset replacement transaction and the asset replacement plan,then analyzes the motivation of CRHIC's asset replacement.The fourth part starts from asset structure and financial performance,business structure and development prospects,the performance of the secondary market stock price,analyzes the economic consequences of CRHIC's asset replacement by using horizontal and vertical contrast methods.The last part is the conclusion and enlightenment.First,the economic consequences of the asset replacement of CRHIC are summarized,concludes that the asset replacement optimizes CRHICs financial status and profitability,strengthens its core advantages and sustainable development capabilities,improved the company's operational independence and corporate value.Second,points out the key factors in the plan that may have a positive impact on the final asset replacement effect as inspirations,such as injecting high-quality assets,raising matching funds at the same time of asset replacement,achieving professional division of labor,satisfying the interests of all parties through performance commitments and compensation terms,and actively responding to integration risks.