Research On The Performance Of Corporate Divestiture Of The Listed Companies

Corporate divestiture is one of the major forms of capital-operations and reflects the corporate contracting strategy. Corporate divestiture plays an important role in advancing the efficiency of inventory assets, adjusting industrial structure and achieving the enterprise value maximize. Now divestitures are widely used in corporation restructuring in west, and scholars' studying about the effect of using the divestiture found that its impacts on corporate financial performance were positive.Corporate divestiture in our country is developed goes along with state-owned enterprise reorganizing. Afterwards, with the adjustment of economic structure and the development of security market, the listed companies carry on divestitures in succession in order to optimize the allocation of internal resources, enhance enterprise core competitiveness and strengthen the whole enterprise profitability by integrating own resources. There is no conclusion among academic community about the influence of divestiture on the company performance. This paper will study on the performance of corporate divestiture of listed company in China. The purpose of this paper is to properly evaluate the performance of divestiture, so as to provide directions on the effective performance of the divestitures.At first, this paper reviews the correlative documents, summarizes the current internal and external situation according to the different study methods and analyzes the problems in the internal study, which provides reference for the study direction.After that, this paper introduces the theory of the divestiture, and analyzes the intentions of corporate divestiture combining with the cases of corporate divestiture in China, thus inquires into the relationship between performance and intention. Then, this paper elaborates the theory related to the performance of divestiture, qualitatively analyzes the performance of divestiture and the restrict factors of it. These efforts provide the foundation for empirical study.Finally, this paper puts to use the Accounting Study approach, selecting the listed companies which divested in 2004 from Shenzhen A-shares market as samples, structuring the comprehensive score model of performance mainly by Factor Analysis, computing sample companies' performance score, analyzing the variation of enterprise performance and the significance of it, meanwhile analyzes and tests the influence of different factors on performance. The results of study indicate that in our country the divestitures don't remarkably enhance the enterprise long-term performance. There are some listed companies which obtain lump-sum income by divestitures. At last, on the basis of analyzing and explaining the results, this paper raises some policy and proposals respectively with government regulatory bodies and listed companies, expecting to help the corporate divestiture to be applied and development in health.