Research On Asset Restructuring Performance Of ST Companies

Assets restructuring is so important that it is not only the core of corporation's capital operations but also the focus of security market's theory. In the past thirty years, the world has studied assets restructuring of listed companies widely and deeply. Since 90's China establishment stock market, the listed companies made an uncommon developing road and reached a certain scale in restructuring times and trading quantities. Assets restructuring emerges one by one, especially since ST(Special Treatment) system was carried out by China Securities Regulatory Commission in 1998, More and more ST companies have joined in the activity of assets restructuring in our security market, in order to improve company performance by integrating own resources. Whether asserts restructuring promotes the competency of ST companies and has a positive effect on the financial condition of ST companies, there is no consistent opinion among academic community. This paper will study on the performance of asset restructuring, so as to make an objective and impartial evaluation on the performance of ST companies and give some suggestions of raising its performance.The paper analyses the performance of ST companies from two aspects: the performance theory, empirical. It could be divided into three parts: The first part is focused on basic theories. We will summarize and analyze the former research fruits according to the performance of asset restructuring, clarify the motive and significance of this study and define its topic by analyzing the current internal and external situation of the performance of asset restructuring of listed companies. Then, we introduce the theory both the asset restructuring and performance of the theory. The second part is the body of this paper. Firstly it designs the empirical research on performance of asset restructuring on the whole, including research method choosing samples and sourcing. After that, it chooses 20 companies from ST companies which restructured in 2004 as a sample, and does a empirical research on the performance of asset restructuring of ST companies, using various statistic methods such as event analysis and financial analysis, the main conclusions are drawn as follows: The assets restructuring can improve the ST companies' performance as a whole, different types of assets restructuring have different performance. The assets restructuring performance of ST companies is not remarkable and continues. At last, it advances several suggestions to the research conclusion according to problems of asset restructuring of ST companies in China.The features and creations of this paper as follows: the author limit the scope of the study to ST companies that are popular and typical in the listed companies and reveal it performance through empirical study. Meanwhile, the paper tries to build a normative framework of performance of ST companies through the event analysis and financial analysis.