| The domestic capital market has gradually improved with the rapid development of China’s economy.Some listed companies have been blindly pursuing diversification,resulting in the lack of concentration of their main business and lack of core competitiveness.Not only the company itself faces development difficulties,but also production capacity and resources.At this time,divesting assets such as non-core subsidiaries,departments or business units of the company has become one of the important means for listed companies to correct diversified business deviations and adjust the industrial structure.At present,China’s economy has developed into a new historical period.The government has taken supply-side reform as the head of economic tasks.The issue of improving quality and efficiency has attracted much attention,and the asset divestiture strategy is highly targeted to solve the problem of inefficient operation of listed companies.Therefore,the research on the motivation and performance of asset divestiture also has strong applicability.SCIE belongs to the coal mining and selection industry.Since the economic crisis in 2012,with the continuous decline of coal prices,the company’s operating performance has fallen sharply,and it has suffered continuous losses in 2014 and 2015.In the case that the main business cannot reverse the loss,SCIE chose to reduce business and divested a large number of unprofitable assets to avoid the delisting crisis.Since then,the case company has successively carried out two different types of asset divestiture to focus on the main business of coal mining.SCIE’s three asset divestitures are out of different motives,so this paper compares the performance of asset divestiture under different motivation.Based on the research status of domestic and foreign scholars on the performance of asset divestiture,this paper introduces the case introduction from the company profile,industry situation and asset divestment implementation process and characteristics,and then comprehensively analyzes the external environment and internal management.The risk of asset divestiture,and the performance of asset divestiture from the two dimensions of market reaction and financial performance.In terms of the market reaction,the first asset divestiture,which was out of the motive to avoid delisting,had better market performance than the second divestiture which was out of the motive to focus on major business,and the market is not optimistic about the third asset divestiture which was short-term behavior of improving performance.In terms of financial effect,non-operating income generated by asset divestiture had improved short-term performance and improved the company’s short-term operating performance,strategic asset stripping optimizes resource allocation and also helping the company maintain the competitive advantage.The first part is the literature review,which combs the domestic and foreign scholars’ research results on the concept,motivation and performance of asset divestiture.The second part is theoretical analysis,firstly analyzes the connotation and type of asset divestiture,then focuses on the basic theory related to asset divestiture,and finally uses event research method and accounting index analysis method to determine the market reaction and financial performance respectively.The third part is the case introduction.After reviewing the basic situation of the company,it reviews the asset divestiture incident in detail and summarizes the characteristics of the company’s asset divestiture.The fourth part is case analysis,firstly it proposes the motivation of the three assets divestiture of SCIE from the external environment and internal management,in order to better evaluate the performance,secondly,the excess capital accumulation rate indicator is used to the market reaction analysis,then the financial indicators analysis method is used to analyze the changes of financial indicators from the aspects of solvency,management efficiency,management ability and corporation value,so as to comprehensively evaluate the company’s financial effect. |
