The Impact Of Shandonghaihua Enterprise's Asset Steipping On The Business Performance

Since the 1980 s,asset stripping,just like merger and acquisition,has gradually become an important mode of reorganization of enterprises and has been widely used at home and abroad.Since the end of the last century,Chinese enterprises have gradually begun to take asset stripping as a means of corporate restructuring,especially for the listed enterprises,and the number and scale of it continued to rise.Asset stripping has a certain impact on enterprise's business performance.By the evaluation of the enterprise's business performance in a certain period of time,it can be reflected whether asset stripping has a positive effect on enterprise's development or not.Different scholars have different opinions on the judgment on asset stripping results.Therefore,one analysis of asset stripping business performance against one enterprise can explain the impact of asset stripping on it from the perspective of a sole enterprise.Because of the uniqueness of the enterprise,which means each enterprise has different capital structures,business strategies,and capital sources,so the analysis of the action of asset stripping from the specific conditions of the enterprise can avoid the impact of different conclusions,and highlight the fundamental role of asset stripping.This thesis takes ShandongHaihua enterprise as a research object.By adopting the literature research method,case analysis method and comparative analysis method,this thesis analyzes three times of asset stripping from 2008 to 2014 from different perspectives,and its causes;by the financial index method and event study analysis method,this thesis compares the changes in the enterprise's business performance before and after asset stripping,and observes how it affected the business performance.Among them,the financial index method is mainly used to analyze the financial index of the enterprise before and after three times of asset stripping.According to the changes in financial index,this thesis discovers the impact of asset stripping on the enterprise's business performance,and by the use of EVA index,this thesis evaluates the enterprise's business performance after asset stripping,which can reflect the changes in the enterprise's business performance more objectively.Asset stripping might reduce the scale of the enterprise to a certain extent,and the EVA index is easily affected by changes in the enterprise's scale of operation.Generally speaking,the EVA index increment of the larger enterprises is larger than that of the smaller ones.With the reduction in the scale of enterprise,there are limitations to simply evaluate the performance of EVA index.Therefore,the concept of EVA Momentum was introduced to avoid the impact of changes in the enterprise's scale on the enterprise's EVA index.By analyzing the EVA Momentum,this thesis compares the enterprise's business performance before and after asset stripping further.The event study analysis method is mainly used to study the excess return rate of the capital market and Tobin Q value before and after three times of asset stripping.By comparing the index values before and after asset stripping,this thesis summarizes and analyzes the impact of asset stripping on the enterprise capital market.Due to the particularity of this case,there were 3 consecutive asset stripping from 2008 to 2014,and the time interval is relatively short.Therefore,this thesis mainly takes the quarterly report of the enterprise as the research unit to minimize the impact of the last asset stripping on the next one.After analyzing the enterprise's quarterly report before and after three times asset stripping between 2008 and 2015,it was concluded that the divestitures with different backgrounds and objectives have different influences.It can be seen from the case study that asset stripping occurred in 2008 is similar to that in 2014,and both of them belong to related party transaction types of asset stripping.From the perspective of financial index,after asset stripping in 2008 and 2014,financial indexes have improved to some extent;from the perspective of capital market performance,through the analysis of the excess progressive return rate of two asset stripping and Tobin Q value,this thesis finds that asset stripping in 2008 had a negative impact on the capital market while the asset stripping in 2014 had a positive impact.Different from these two years,asset stripping in 2011 had a negative impact on the business performance of the enterprise,both in terms of financial index and capital markets.The analysis of the impact of ShandongHaihua enterprise's asset stripping on the business performance helps other state-owned enterprises to take asset stripping as a business management method,and also has a certain use for reference to other listed enterprises.