A Study On Performance Of Asset Restructuring Of ST Listed Companies In Economic Crisis

The release and carrying out of “The Notice of the Stock Special Treatment of ofListed Companies in the Abnormal Situation” and “The Implementation Measures toSuspend and Terminate the Listing of Listed Companies in Loss” makes the ST listedcompanies in China’s securities market a class of special groups, facing delistingpressure. The assets restructuring, as the core content of the enterprise capitaloperation, can rapidly improve the quality of the company’s assets, enhance businessefficiency, competitiveness, enhance profitability, achieve optimal allocation ofresources, and thus become the important means of many ST listed companieskeeping listing qualification. However, Can the assets restructuring of the ST listedcompanies really improve the enterprise quality, improve operating conditions toachieve the optimal allocation of resources or be just keeping listing qualificationmeans? For investors, can the ST listed companies assets restructuring really giveshareholders the excessive return? What kinds of evolution trajectory dose financialperformance have before and after the reorganization? Is it sustainable? Are themarket performance and financial performance of different restructuring methoddifferent? Why do they have such differences? And how do such differences change?To answer these questions, in need is the theoretical analysis and empirical researchfor the assets restructuring performance of the ST listed companies.This paper focuses on the theory and empirical issues of the ST companiesrestructuring performance to explore the motivation and purpose of the assetsrestructuring, to give an objective and impartial evaluation of the assets restructuringperformance of the ST companies, from market performance and financialperformance perspectives, and to, according to the results of the empirical analysis,put forward some policies and suggestions.The whole paper can be divided into three parts: the study background, thetheoretical foundation, and the conclusion and suggestions of the empirical analysis.The first part states the study background, significance, methods and stream ofthought, sums up the literature at home and abroad on the companies restructuringperformance, defines the concept and meaning of the assets restructuring, analyzes thetypes and motivation of the companies restructuring, and presents the mainstream theories in relation to the assets restructuring performance. As the main part, thesecond one, according to the classification criteria of The Reorganization of ListedCompanies in2008Overview, divides restructuring models into four types ofsub-samples of equity transfer, mergers and acquisitions, asset replacement anddivestitures, the market performance and financial performance of which arerespectively given the empirical analysis and inspection by means of the eventanalysis method and the financial analysis method. The study founding is as follows:the assets restructuring of the total sample and the samples of equity transfer, mergersand acquisitions, asset replacement can bring shareholders the excessive return, yetthe assets restructuring model of the divestitures do not. But the information leakageexists before the public disclosure of the assets restructuring information, and thoseinvestors based on the above public information can not share the return brought bythe assets restructuring, yet those insider traders grab more restructuring wealth thanordinary investors. In terms of the financial performance, different restructuringmodels show different features. The restructuring models of the equity transfer andasset replacement present an obviously-improved financial performance withsustainability, the restructuring model of the mergers and acquisitions do not, and therestructuring model of the divestitures tends to be a transition means to better thefinancial performance. The third part is the conclusion of the empirical analysis：fromthe securities regulatory perspective, relative to the formulated policies of the STlisted companies assets restructuring, the suggestions should be here for regulatoryauthorities; from the point view of the investors, the path forward should be clear forthe investors who observe the growth point hidden behind the ST companies assetsrestructuring and the companies which look for the obvious and sustainablerestructuring performance; from where the ST companies stand, some suggestions andpolicies should be given to the assets-restructuring-planned ST listed companies andother companies in financial crisis on how to choose the restructuring models andhow to really improve the restructuring performance of the ST listed companies,optimize the allocation of resources, enhance the overall value of the companies andincrease the wealth of the society as a whole, after the restructuring.