Research On The Long Run Performance After Divestitures For China List Companies Buy BHAR Method

Divestiture is an important way of asset restructuring for listed companies, home or abroad, assetstripping of the quantity and scale of a sustained growth, Asset scale and frequency of China listedcompanies increases ceaselessly, The long-run performance after divestitures for Chinese listedcompanies has become a problem that deserves our attention and research, however, domesticscholars for the long run performance after divestitures research was not enough to draw a conclusion.Therefore, this article will research the long run performance after divestiture for China ListedCompanies.First of all, The article studied domestic and foreign assets divestures theory to sort out theresults of research, on the basis of preliminary analysis, get our country asset stripping currentsituation and basic characteristics. Subsequently, based on2005to2007was asset stripping205shares in the company as a sample, using the event study method in the BHAR method to the samplecompany’s divestiture after long-term performance empirical study. At the same time, asset strippingafter long-term performance and its influencing factors analysis. The results show that: Overall thelong run performance after divestiture is poor, and as time goes by, performance declines graduallyincrease; and equity stripping behavior in listed companies, asset stripping after long-termperformance worse; associated with dissection compared, Listed Companies Association afterstripping of the long term performance worse. The long run performance after divestiture of influencefactors are complex, listed company scale, stripping assets relative size and peeling the proportion ofshares in circulation will peel off assets after long-term performance impact.According to the research results, this paper argues that the macroeconomic policies shouldstrengthen regulation and assurance mechanism construction, to improve the asset stripping behaviorregulation; listed companies deal with asset stripping to give sufficient attention, clear advocatecourse of study, divestiture will be incorporated into the company’s long-term development strategy,when listed companies has developed to a certain scale, can consider to pass asset stripping toimprove internal synergy, the divestiture process should control the scale and timing of divestiture,timely after complete dissection of the integration work. For listed companies, divestiture reallypromotes the stable and healthy development.