On the Performance of Assets Restructuring of State-controlled & Non-state-controlled Listed Companies —Evidences from the Major Assets Restructuring in Chinese A-share Markets

Using the Principal Components Analysis (PCA), this paper investigates 205 cases covering all major assets restructuring events related to state-controlled and non-state-controlled listed companies from 2002 to 2004 in China's A-share markets. The empirical study shows that overall major assets restructuring has a negative effect on performance in the short run, but a positive effect in the long run. As a whole, the major assets restructuring has a lasting positive impact on state-controlled listed companies, which boosts up the long performance. Contrastively, it has a lasting negative impact on the performance of non-state-controlled listed ones.