Research On Asset Restructuring Performance Of Listed Companies

There are two ways of enterprise development: internal expansion and external expansion.With the development of China’s capital market,more and more enterprises choose to integrate resources,expand the scale of enterprises and enhance competitiveness through external expansion while conducting internal expansion with large investment and slow effect.Asset restructuring is an effective way of external expansion.However,many enterprises have multiple motivations for asset restructuring,some are positive,some are negative,and even blindly follow the trend.Different motivations and different ways of asset restructuring will lead to different restructuring performance.Chinese scholars have studied the law of asset restructuring performance for many years,and have not come to a conclusion.What kind of asset restructuring is conducive to enterprise performance is still necessary to study.In this paper,the asset restructuring of Tiantan biology started on December 6,2016 is selected as a research case.First of all,through reading and combing the domestic and foreign literature on the motivation and performance of asset restructuring,we can understand the relevant theoretical basis,research methods and relevant conclusions,and pave the way for the study of Tiantan Biological asset restructuring.Secondly,the background of Tiantan Biological restructuring is explained from two aspects of system and industry.Thirdly,the paper analyzes and sums up the causes of the assets reorganization of Tiantan biology.The main reasons are to eliminate the intra group competition,adjust the product structure,improve the profitability,expand the main business scale,obtain the synergy effect,seize the market share and improve the market competitiveness.After that,the process and content of the case of Tiantan biological assets reorganization are sorted out.This assets reorganization includes two parts: one is to sell 100% shares of the subsidiary beishengyan and 51% shares of Changchun Qijian to Zhongsheng through asset divestiture.Since then,Tiantan biological no longer holds the vaccine industry.Second,Chengdu Rongsheng,its subsidiary,was allowed to purchase 80% of the equity of Guizhou Zhongtai through asset acquisition to expand the production scale of blood products.Then,the short-term market performance of Tiantan biology is analyzed by the event study method,and the cumulative excess return in the window period is calculated by the wind database.At the same time,the financial performance of the company’s asset restructuring is analyzed by using the method of financial index analysis.The financial data and industry data of the current year and two years before and after the restructuring are sorted out,and the change trend chart of each index is drawn.The impact of asset restructuring on the company’s financial performance is analyzed and evaluated according to the change of index and industry comparison.Finally,the case conclusions and suggestions are drawn,hoping to provide some reference for enterprises and market investors.The conclusion of the case study shows that:first,the market performance of Tiantan biology has been improved.The cumulative excess return of the company changes from negative value to positive value in the window period of asset restructuring,and the short-term performance has improved.Second,the company’s financial performance has been improved.On the basis of the research conclusions,we can draw suggestions for the reference of enterprises and market investors.For the future operation and management of Tiantan biology,the company also needs to strengthen the integration of resources.For other enterprises,it is necessary to correctly understand the reorganization of assets and correct the motivation of the reorganization;comprehensively consider the financial indicators and attach importance to the synergy effect;after the reorganization,it is necessary to strengthen the integration of enterprises and reasonably allocate resources.The listed companies that invest in the reorganization of market investors should pay attention to the motivation of enterprise assets reorganization,the change of performance after reorganization and the efficiency of enterprise resource integration.