| The main form of enterprise restructuring is capital operation,,which can improve management and compititive capability through reallocation of capital and kinds of resources and reshaping of operational form and organizational structure. In foreign market economy, capital operation for an enterprise includes two kinds. One is expansionary style such as M&A( merger and acquisition),the other is concentrated style such as divestiture,spin-off,equity carve-out,stock repurchase and etc.The concentrated restructuring is as important to the management decision- making as the expansionary one. However, M&A was discussed quite more than concentrated capital operation in the past. The reason lies in some historical background and false idea. In the past,we emphasize productive operation rather than capital operation. The result of this operational model is the lack of compitition because the small-scale and reduntant production lead to high manufacturing cost ,simplex operational model and undiversified market risk. This situation was changed with the application of capital operation in early 1990's.Especially after the CPC Central Committee made decision on the reform and development of state-owned enterprise at the 4th plenary Session of the 15th CPC central committee,the capital operation of expansionary kind came to be more and more popular. However,people aren't familiar with the concentrated operation and even detest it.In their minds,they take every opportunity to expand in order to be gigantic.The reason for this phenomenon is our social system.Some state-owned enterprises prefer scale to profit and some are required to merge for thesocial stablity and other political concerns.This kind of expansion is bound to fail because it ignores that capital only goes where profit can be made. With the economic reform and listing of enterprise,profit begins to play an increasingly important role in guiding operation of enterprise.Securities market is a place of resource allocation where enterprise with excellent financial result rather than mass-scale is highly regarded.For this criteria,domestic enterprises realize they should employ whatever capital operation including concentrated strategy if it can improve financial position.Divestiture is an important form of concentration.With the explosion of IT bubble,it is more and more difficult for domestic IT company to survive.So, listed IT corporations adopt divestiture in order to get out of difficulty. All the listed IT corporations which ever adopted divestiture in 2001 are the objects of my paper. We focus the course and economic function of divestiture as well as its basic theory by incorporating positive and normative reseach methods.I hope my reseach can provide some theoretical and practical guidances for the standardization of corporation behavior ,evaluation of economic function of divestiture and the development of capital market.This paper has four parts.The first part is introduction.First of all,we describe the negative impact upon the IT industry for the change of international and domestic situation.Simply speaking,foreign IT enterprises suffer abruptly reduced profit and low share price;chinese IT enterprises get their development slowed and their operating results become bad because of extreme competition;the prospect of chinese enterprises become unpredicable with accession of WTO.Later,this paper makes a retrospection on the past research achievements related to divestiture.See,the relationship between divestiture and M&A,the response of secondary market on divestiture,the economic function of divestiture and earning management of listed corporation.In the end,we mention our reseach logic and methodology. Bothpositive method and normative one are adopted in this paper.Thus this paper becomes more persuasive by incorporating practice with theory.The second part is the theoretical analysis on divestiture.The five features of divestiture are summarized after comparison between divestiture and the other forms of concentr... |
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