A Comparative Analysis Of The Market Effects Of The Asset Restructuring Between Non-ST Listed Company And ST Listed Company

As the most important part of the operation of the business capital, asset restructuring has always been the best choice to improve production efficiency and market share. From the microscopic point of view, asset restructuring either improves the operational efficiency of the enterprise assets, in order to optimize the profitability of the business, but also expands the scale of the assets, in order to achieve the maximization of the enterprise market share. From a macro point of view, asset restructuring promotes the flow of social resources, achieves the effective allocation of social resources, and plays a positive role in China’s industrial restructuring.The purpose of this study is to verify whether there is a significant difference of the market effects of the asset restructuring between non-ST listed company and ST listed company. This paper uses event study methodology to the empirical analysis, includes the following six parts.The first part is the background. This section first introduces the importance of asset restructuring as the core of the corporate capital operation, then introduces the scale of China’s asset restructuring, introduces the provisions of the laws enacted by the Chinese regulatory authorities at last.The second part is a literature review. This section first introduces the research of foreign scholars on the market effects of asset restructuring. Then, this section introduces the domestic scholars on the market effects of asset restructuring. Domestic and foreign scholars have been basically the same conclusion that t asset restructuring creates value and increases shareholders’wealth.The third part is the theory of asset restructuring. This section first defines asset restructuring. Then, this paper divides the type of asset restructuring according to the classification of the database. Finally, this paper introduces the motivation theory of asset restructuring in detail. The fourth part is assumptions and sample selection. First, this section determines the research method used in this paper, and introduces assumptions of the method. Second, this section introduces the origin of the samples, and establishes the conditions of sample selection. Finally, this section introduces the steps of the analysis.The fifth part is the empirical results. Based on the above assumptions, we use event study methodology to obtain the market effects of non-ST listed company and ST listed company. Then, we use the T-test and W-test to test the differences between the market effects of non-ST listed company and ST listed company.First, during the event window period, the cumulative average abnormal returns of non-ST listed company is significantly positive, indicating that the response of the market to the asset restructuring of non-ST listed company is positive.During the event window period, the cumulative average abnormal returns of ST listed company is significantly positive, indicating that the response of the market to the asset restructuring of ST listed company is strongly positive.The value of the T-test and W-test tell us that there is a significant difference between the market effects of the asset restructuring of non-ST listed company and ST listed company, and the cumulative average abnormal returns of ST listed company are significantly higher than the cumulative average abnormal returns of non-ST listed company.Second, during the event window period, the response of the market to three types of the asset restructuring includes asset acquisition, asset stripping and equity transfer of non-ST listed company is positive, and only the cumulative average abnormal returns of equity transfer is significantly positive.During the event window period, the response of the market to three types of the asset restructuring includes asset acquisition, asset stripping and equity transfer of ST listed company is positive, and investors’cumulative average abnormal returns are significantly positive. This indicates that asset restructuring of ST listed company create value and significant increase the shareholders’wealth.Only the value of the T-test shows that there are significant differences between the market effects of three types of the asset restructuring of non-ST listed company and ST listed company. The value of the W-test can’t show there is a significant difference between the market effects of equity transfer of non-ST listed company and ST listed company.The last Part is the conclusions and policy recommendations. Based on the above results, I suggest that the regulatory authorities should improve the system of listed company, build a multi-level regulatory system, punish the behavior of insider trading, and improve the information disclosure system of listed company.