Research On The Financial Performance Of Lu Tianhua’s Bankruptcy Reorganization

In recent years,fierce market competition,overcapacity of chemical fertilizer and high leverage ratio have led to some enterprises unable to repay large debts and can only rely on continued borrowing and government subsidies,which will affect the process of China’s economic transformation.Bankruptcy reorganization is in financial distress,but has the system of developing enterprises with advantages to protect stakeholders,but the implementation of bankruptcy reorganization has a long cycle,a large number of related parties,and the final result is uncertain.therefore,the core content of this paper is to study whether the financial performance can be fundamentally improved.Sichuan Lu tianhua Co.,Ltd.has been developing for a long time,but due to poor management,the company is in financial difficulties and has now been restructured.Taking Lu tianhua as the research object,this paper first summarizes the concept of bankruptcy reorganization,introduces the situation of the enterprise,analyzes and combs the motivation and process of reorganization;secondly,carries on the financial performance analysis,at the level of short-term performance,using the event study method,it is found that this has a positive pulling effect on the enterprise in the short term,but because the important subsidiaries of the enterprise are in the restructuring process and other reasons,the effect is not obvious.At the level of long-term financial performance,the financial indicators of seven operating years before and after the reorganization are analyzed,compared vertically and horizontally,and the comprehensive performance of the enterprise is evaluated by entropy weight method,and it is found that all the financial indicators have been improved,but there is still room for improvement;finally,summarize the problems existing in Lu tianhua after restructuring and put forward suggestions for improvement.This paper studies the financial performance of Lu tianhua bankruptcy reorganization,which not only helps the enterprise to optimize its business plan,but also provides reference experience for other enterprises in the process of bankruptcy reorganization.