Theory Study And Performance Analysis On Divestiture

Divestiture has been used as a major form of corporate restructuring as important as corporate M&A.The quantities and size of divestiture have been constantly increasing both home and abroad.Contrary to M&A,either the academic or the business doesn't attach the same importance to divestiture/The literatures about corporate divestiture are much smaller the M&A.Now more and more domestic firms are dedicating to how to make themselves as large as possible,so it not likely appropriate to the accassion.But this phenomenon frequently happens all over the world,and many excellent companies such as GE and VANKE achieve success by timely divestiture.Divestiture plays an important part in advancing the efficiency of inventory assets and adjusting industrial structure. Divestiture has been applied widely overseas, which has become a well-rounded capital operational mode. The West countries have researched the appliance of corporation assets deeply and formed systemic theories of divestiture in the long-term market economy practice. The history of foundation and development of the security business in our country is not long, so divestiture is a new form. Divestiture boosted fast after 1998 in our country. This paper selects 98 samples from 2003 in Chinese listed-company , and analyzes the divestiture performance of listed-company by factor analysis. The framework of the paper is designed as following:Chapter 1 sets forth the background and the significance of the research. After introducing the content and method of the study, the paper then put forward the points of innovation.Chapter 2 defines the divsetiture, and then sets forth the theoretic basis and practice of divestiture. In this part, the paper sums up and analyzes the theory hiding behind the contractive action and reviews the development process of divestiture in the world. These efforts provide the foundation for the following study.Chapter 3 observes and researches all kinds of divestiture characters in listed-company from the respects of gross, makeup, time, size and so on.Chapter 4 makes a positive study of divestiture performance of the listed-company. This part expounds the resource of data, the choice of sample and defines the variable index. It is proved in this paper that the divestiture performance is not conspicuous in the listed-company of our country.Chapter 5 comes to the conclusions and gives some suggestions.