| China’s economic development into the new normal,the supply side of excess capacity,the contradiction of structural imbalance between supply and demand is increasingly prominent.In recent years,the work has been carried out to achieve positive market results,from the implementation of the situation,coal and other key areas of production capacity to make positive progress,cutting capacity of hundreds of millions of tons,the supply and demand relationship has improved.However,it must be seen that most of China’s productivity can only meet the demand of low-end,low-quality and low-price,production capacities show large overcapacities,the supply structure does not adapt to the new demand development and the actual supply is completely insufficient,therefore,it is required to implement restructuring and reform of enterprises with excess capacity,rigid but not dead,to improve business operation,optimize industrial structure,diversify debt servicing risks,and help enterprises to sustain healthy development.This paper explores the financial synergy effect of restructuring coal enterprises by means of a case study to provide reference for the same industry and other similar enterprises.This paper selects Company J as the research object,which completed its corporate restructuring in 2020 and has shown good development trend after one year of operation and development.Firstly,this paper introduces the background of restructuring,followed by the use of literature analysis to collate the relevant literature and examine the relevant theories on corporate restructuring and financial synergy at home and abroad.Secondly,it introduces the policy background of the restructuring of coal enterprises,the pre-reorganisation profile of Company J and the motivation and process of the current round of restructuring,and finally introduces the post-reorganisation situation of Company J,the subject of the study.Again,the financial synergies of Company J after restructuring are analysed in the light of the actual situation of Company J after restructuring,based on the external market and internal finance respectively,and based on the event study method and the hierarchical analysis method.The analysis revealed that Company J’s stock price reflected strongly in the year after the restructuring,the market value of the stock increased and the financial synergy effect based on the market appreciation effect performed positively.The financial expected benefits based on the hierarchical analysis method performed poorly,with better results for specific growth capacity,supply capacity,R&D investment and social responsibility,and poorer results for profitability,solvency and operating capacity.The main reason is that after the restructuring,although the scope of business of Company J is focused on mining,processing,transportation and marketing of coal,which has increased the concentration of the industry,the business structure is single,and even though the profit growth has been improved,the profitability of the enterprise is still insufficient,and also,the asset and liability ratio of the enterprise is still high,which has certain financial risks.In contrast,Company J’s growth capability is positive,with an outstanding competitive advantage in the industry and a positive growth trend in terms of supply capacity,R&D investment and social responsibility.Then,problems and related suggestions are made to address the underperforming aspects of Company J’s financial synergy to help the company correct them in time for subsequent operations.Finally,the findings of the article are summarised and conclusions are drawn:(1)Company J after restructuring has shown positive market value-added effects.(2)Company J,after restructuring,showed an overall less positive financial expectation effect,and although the economic benefits did not meet the expected objectives of the restructuring,the financial risks of the enterprise were controlled. |
PDF Full Text Request