Research On The Performance Of Corporate Divestiture Of The Financial Distress Listed Companies In Our Country

Divestiture is a kind of corporate contracting strategy and play an important role inadjusting industrial structure and optimize the allocation of internal resources. Divestituretechnology in the developed countries have been widely used in enterprise assetsreorganization activities and play a positive role for the company’s performance. In ourcountry, with the development of the securities market and adjustment of economic structure,the listed companies have also carried on the assets in order to optimize the internal allocationof resources and improve the enterprise core competitive ability. In the study of the listedcompany’s divestiture, the object of study is usually selected the listed companies of Shanghaiand Shenzhen market, and there is no special study on financial distress companies. In thispaper, the performance of listed companies in financial distress issues of divestiture expandedresearch, drawing on divestitures related domestic and foreign theoretical results on the basisof the financial distress listed companies selected as samples to study the performance levelsof divestiture..Divestiture of performance can be measured from two aspects: the first is, divestituremarket performance, namely the impact of the divestiture of the company’s stock price; thesecond is the divestiture of financial performance, namely the impact of divestitures ofbusiness performance.In the study of market performance, the establishment of a marketmodel and multiple regression model, the research conclusion showed that: during thewindow period, asset stripping brought excess returns to shareholders, but the course of thestudy also found that there is information leakage phenomenon before the disclosureinformation disclosure; Multivariate regression analysis results showed that the first bigshareholder’s stake, enterprise scale, stripping scale, circulation ratio, asset-liability ratio andreturn on equity market performance of assets have a significant impact. The first bigshareholder ownership and enterprise scale and the CAR is significantly negative correlation;Stripping relative size, return on equity and asset liability ratio is correlated remarkablypositively with the CAR. Flow rate of the assets of listed Companies market performancehave no significant effect. In the research on the financial performance of divestiture, using constant ratio analysis and sequential analysis method, draw a general assets in those daysthan assets after improving the first year but declined after the performance, improve the lackof continuity, there is no real increase in the long term performance.The results show that the financial distress listed companies in China is not able tosignificantly improve the long-term operational performance of enterprises. on the basis of theresearch conclusion of the analysis and interpretation, and puts forward some suggestions forlisted companies and government regulators for the help of divestiture in China application’shealth and development.