Research On The Economic Consequences Of *ST Changlin Company’s Asset Restructuring

Nowadays,with the development of China’s industry,lots of companies with excess production capacity are going into liquidation.Most companies decided to borrow from bank and government for surviving,but that is hard to sustain.So they want to have a chance to reborn.Meanwhile,these enterprises will consume a lot of resources such as the subsidies and bank loans of government.The disposal of zombie enterprises has become an urgent problem in China.*ST Changlin company is one of the enterprises facing dilemma.After reading the previous paper,this paper explains the relevant concepts of enterprise restructuring and the methods of economic consequence analysis.This paper taking *ST Changlin company’s asset restructuring as an example,introduces the process and results and the motivation and purpose.At the same time,collect the basic financial data of *ST Changlin company before and after the reorganization,combine with the basic content of economic consequences evaluation,take the data as the basis,objectively and clearly evaluate the economic consequences of the asset reorganization.In general,*ST Changlin’s asset reorganization has retained the company’s listing qualifications and improved the company’s financial performance through market-oriented means.It protects the rights and interests of owners,creditors,investors,etc.And provides power for the sustainable development of the company in the future.This paper begins with the analysis of financial performance and market effect.Summarizes whether asset restructuring has played a dramatic role,as well as finding and suggesting deficiencies in the process of asset restructuring.The overall effect of Changlin company’s asset restructuring is good,creating positive economic consequences.The reorganization process are important and provide experience for other company.There has important practical significance to study asset restructuring,it helps to attract market investors and presents the economic consequences and social benefits of corporate asset restructuring.