The Strategy Of Asset Appraisal Choices In Affiliated Party Restructuring: Neutral Or Conspirator

1989has witnessed China first assessment opened a prelude to the development of theevaluation, some known that asset appraisal had affect on economy. The assessment hasdevelopment not more than30years, many aspects are not perfect. In the process of affiliaterestructuring, assessment firms and clients may conspire together to veneer of legality in order toattract business, this would increase fraudulent transaction in affiliate reorganization. Therefore,this paper selects Heng Xindelv assessed the value of minority equity in affiliate transaction as acase, uses the methods of game theory and financial analysis to research the assessment firm’sstrategy choice, has important practical significance.The article firstly introduces the concept of affiliate transaction and asset assessment, basedon the theory of economic rational, information asymmetry theory and the theory of inner control.Among affiliation parties asset reorganization needs asset appraisal to ensure the transaction canbe fair. Assessment firm is entrusted by client in the affiliate transaction, it takes self-interestmotive and opportunism principle to conspire with the large shareholder, reduces relative programand choices inappropriate parameters in approaches that evaluates the price which largeshareholder manipulates. Unfair transaction is legalization in the end. The regulator should takemeasures to command listed company to disclose asset evaluation report about the price due to theassessment illegal acts, and strengthen corporate governance about internal control. Meanwhile,appraisal agency should improve its inner management, take actions to constrict certified publicvaluer’s fraud and establish integrity culture in the firm.The thesis uses the methods of game theory and financial analysis to research Heng Xin delv’s strategy choice in the affiliate transaction. In a short term in order to get extra earningsHeng Xindelv conspire with Zhu Haizhongfu to tunnel the listed company, the assessmentoverestimates the target plants income, underestimates its cost and uses without reasonablediscount rate to calculate its value. Due to the result deviated from the market value, the smallinvestors resisted it, many financial media reported the conspirators from the negative viewpoint,and CSRS investigated Zhu Haizhongfu and Heng Xindelv.Finally, the paper analyzes how to prevent the assessment and large shareholder fromtunneling listed company from two viewpoints which are the appraisal and regulators. On onehand, the assessment should reinforce the internal control construction, strengthen the inner audit,set the database about enterprise value evaluation information, and certified public valuer shouldbe clarity of evaluation purpose, choice proper methods that appraisal results can be fair. On theother hand, the regulators speed up evaluation of legislation, strengthen disclosure informationabout the asset assessment report, promote different department work together, establish a websiteabout national enterprise value database which based on invest bank, and make the assessmentbigger and stronger in the form of merger and reorganization. Each department choices the role ofneutral in the affiliate transaction, improves everlastingly positive energy for promoting good andfast of the development of Chinese socialist market economy.