A Research For Reasons And Long-Term Performance Of China Listed Companies' Divestiture

Company contraction is on the other side of company's merge and acquisition action, which includes divestiture, spin-off, equity carve-out, stock repurchase, targeted stock, voluntary liquidations. The oversea research about divestiture is quite adequate, because the number of divestiture was more than 40% in the corporate reform practice in US. While in China, there are not so many papers about this subject. It is more and more necessarily that we need a theory to direct the practice in the business world since company contraction gradually becomes popular.This paper first collects the related theories and conclusions in both western countries and China, second tries to find out the proper model and hypothesis, then accumulates several years'divestiture information and data, finally summarizes some conclusions and results based on the statistical test. It would be honored that if this dissertation does a little bit contribution to China capital market as a reference or by proposing suggestions. As for the methodologies, it is finished by empirical research, supported by theoretical research and comparison investigation.The first part is about the background, the second part introduces academic study, the third part is about the theoretical basis and practice history, the fourth part is the divestiture description result, the fifth part analyzes the underlying reasons to divest, the sixth part uses principal component analysis and Wilcoxon test which leads to the outcome, the last part is the final suggestions and prospect.