A Study On The Performance Of Asset Reorganization Of ST Company Based On Financial Perspective

Capital market plays a decisive role in the allocation of resources. An efficient capital market can promote a healthy and sustainable development of a country’s economy. Securities market in China, however, is often affected by man-made factors, leading to insider trading, besides small and medium shareholders’ rights and interests are violated. These not only violates the fair market order, but also affect the public confidence in the capital market. The problems of ST company’s assets reorganization has become the focus of the capital market in recent years. ST company in the process of asset restructuring is facing two serious problems:First, the restructuring price is not fair, and big shareholders use restructuring activities to enrich themselves; Second, the reorganization activities cannot really improve the ST company’s performance, including financial performance and market performance. According to the research limit, this article selects whether the assets reorganization of ST company can improve ST company’s financial performance as the research object.This article describe the current ST company assets reorganization firstly from four angles of ST company assets reorganization purpose, assets reorganization modes, assets restructuring theory and the influence factors of assets reorganization. Use the factor analysis method and the principal component analysis to research the 90 ST companies reorganized in 2010 in line with the conditions of the empirical study. According to the results of the empirical analysis, the different types of restructuring will have different impacts on the result of the restructuring. On the whole, ST company’s asset reorganization canimprove ST company’s long-term financial performance, down to different ways of restructuring, through research we get follow results. Mergers and acquisitions mode of assets restructuring has a significant effect on ST company’s short-term financial performance. Transfer of shares mode of assets restructuring is difficult to improve the ST’s short-term or long-term financial performance. Great assets replacement mode of assets restructuring can improve the ST company’s financial performance in the most significant and sustainable way. Corporate divestment mode of assets restructuring mainly reflects on the improvement of the financial performance in the short term. Debt restructuring mode of assets restructuring has a weak effect on the improvement of the ST listed company’s financial performance. Mixed restructuring mode of assets restructuring mainly effects the long-term financial performance.The innovation of this article is that we discriminate the financial indicators based on the characteristics of ST company. For example, the ratio of assets to liabilities belongs to moderate index under normal circumstance, in this article, we take this ratio as reverse index. Moreover, the current ratio belongs to moderate index in general, here we consider it as positive index. After such adjustments to the financial index, we can get a more practical research result.The data of selected indicators are derived from the audited and public disclosed financial statements, with strong authenticity, on the other hand, the indicators have the characteristic of practical and timeliness, so the results of this article have certain reference value.