Research On The Performance Of Asset Replacement Of Listed Companies In Financial Distress

According to China’s "Shenzhen Stock Exchange Stock Listing Rules",when a listed company has abnormal financial conditions such as a negative net profit for two consecutive fiscal years,the exchange will implement a delisting risk warning for the company’s stock trading.Stocks are marked with * ST.If the company that has been issued a delisting risk warning is still negative in the third year,the company will be suspended from listing.Therefore,in order to retain their qualifications for listing,many of these financially troubled listed companies will use asset restructuring methods to help themselves out of the predicament.Asset replacement,as a form of asset restructuring,is also increasingly appearing in listed companies.However,for the performance of asset restructuring,most domestic and foreign scholars are currently studying mergers and acquisitions as a form of reorganization,and relatively little research has been done on asset replacement.This article will study the performance of *ST meiqi asset replacement from the perspective of specific cases.*ST meiqi is in the traditional energy industry of coal.Since 2012,under the background of ecological environment constraints and slowing economic growth,the market’s demand for the coal industry has decreased,resulting in a decline in coal prices and a decline in coal company profits.It is also because of the downturn in the industry that *ST meiqi suffered huge losses in 2014 and 2015,facing the risk of suspension of listing.In order to retain the qualification for listing,the company carried out asset replacement in 2016,so it studied *ST meiqi The performance of asset replacement will have some reference significance for other traditional energy industry listed companies in financial difficulties.In order to evaluate the performance of *ST meiqi asset replacement,this paper will focus on the analysis of stock price response of *ST meiqi asset replacement through the long-term and shortterm event research method,and analyze whether the financial performance of *ST meiqi asset replacement has been improved from the perspectives of profitability,solvency,operation ability and development ability with the financial index analysis method.At the same time,EVA will be used to analyze the value creation ability of the company Power.By using the short-term event research method and long-term event research method to calculate the stock price response of *ST meiqi before and after the event asset replacement,it is found that the cumulative abnormal return rate of the company in the short-term window and the buy-and-hold abnormal returns of the stock in the long-term window are both positive,indicating that the asset replacement has brought positive wealth effect to the shareholders of the company.After analyzing the indicators of profitability,development ability,solvency and operating ability of the company before and after the asset replacement for five years,it was found that all financial indicators except the account receivable turnover ratio after the asset replacement had improved to a certain extent.This shows that asset replacement can not only help financially troubled companies out of difficulties,but also be conducive to their sustainable development,but companies that develop new energy also need to pay attention to the difficulty of receivables formed by related party transactions.In addition,through the analysis of economic value added,it was found that asset replacement improved the company’s economic value added,turned negative to positive,and maintained a high growth rate,the company created returns for investors.