On The Strategic Motivation And Effect Evaluation Of Zhentai Electric Appliances Extraction

With the speeding up of reform and opening up in China,in order to reduce the risk and obtain the profit of scale,many companies adopt the form of merger and reorganization to carry on diversified management in our country.However,due to excessive attention to the expansion of the size of the company,and neglecting the merger and acquisition company products and culture integration,results to increasing debt costs after mergers and acquisitions and business performance decline.In this context,for returning to the main business,more and more companies through the divestiture and reorganization of assets,constantly shrink the internal operational front,trying to improve the financial situation and operating efficiency of the company.Based on the practice of divestiture of many listed companies,this paper holds that: the assets Divestiture plays an active role in adjusting the company's development strategy,improving the company's financial situation,and ensuring the motive force of sustainable development.However,due to the imperfection of the securities market and the deviation of the company's understanding of the asset divestiture,many companies are only in order to whitewash the financial situation and keep the listing qualification.In addition,the adverse consequences will gradually appear in the long-term operating performance,and ultimately hinder the further development of the company.In short,divestiture has gradually become the company's first choice to improve the above-mentioned situation.Especially in recent years,the number and scale of asset divestiture of listed companies in China have been increasing.However,the implementation of asset divestiture is still faced with a series of problems due to the lack of experience and immature theory of asset divestiture of listed companies in China.For example: when divestiture,how to peel off and which principles should be followed has not yet formed a unified conclusion,resulting in a lot of difficulties in the process of divestiture.In view of this,the theory and practice of asset divestiture of listed companies in China need to be further discussed.Based on this,this paper analyzes the reasons and timing of asset divestiture of listed companies in China in the light of China's national conditions,and analyzes the situation of divestiture of Zhengtai Electric Appliances in the light of relevant theoretical research.For the basic case study,in order to solve the problems in asset divestiture.Firstly,this paper introduces the research background and significance,domestic and foreign research status,research content and methods in detail,thus leading to the research topic.Secondly,the paper summarizes the definition of asset divestiture and the difference between divestiture and merger,and optimizes the product structure to promote the upgrading of industrial institutions,lighten the debt burden and improve the financial situation.Returning to the main business to adjust the company's strategic objectives,as well as stripping the non-performing assets to invigorate the idle assets,this paper analyzes the strategic drivers of the asset divestiture of the listed company.The way of equity divestiture and the way of payment of debt creditor's rights are analyzed,and the theoretical basis of efficiency theory,agent theory and resource allocation theory are analyzed.Thirdly,on the basis of the background and divestiture of Zhengtai Electric Company,the paper firstly optimizes the main business assets of the company from reducing the company's debt,and sells non-core business to alleviate the cash demand.This paper analyzes the strategic motivation and strategic development plan of asset divestiture from four aspects of evading the government control and reasonably planning the company's operating tax and meeting the needs of the change of operating environment of electrical products of Zhengtai Company.Secondly,it analyzes the strategic motivation and strategic development plan of asset divestiture.The paper studies the choice of the way to implement the divestiture of Zhengtai Electric.From the aspect of strategic growth,capital repayment and market profit before and after the divestiture of Zhengtai Electric assets,the company's equity cutting and divestiture is studied.Finally,the paper evaluates the economic effect of the divestiture of Zhengtai Electric from three aspects: performance management,main business competitiveness and short-term value of capital market.Fourthly,combined with the above analysis,on the one hand,the main conclusions of the paper are: under the influence of many factors,Zhengtai Electric has established the way of equity divestiture,and the significant asset optimization has improved the short-term market performance of Zhengtai Electric.After the debt burden relief,the operating ability of Zhengtai Electric improved and the effective divestiture increased the value of Zhengtai Electric.On the other hand,the author draws three inspirations: paying attention to the way and timing of divestiture,optimizing the external environment of divestiture and improving the initiative and timeliness of divestiture.Therefore,through the data analysis of the performance of asset divestiture of listed companies in China,we can draw the empirical conclusion that whether divestiture can improve the performance of the company,which is helpful to find out the problems encountered in the process of implementing the divestiture of listed companies in our country.It can provide some reference basis for the implementation of asset divestiture of listed companies,make the implementation of asset divestiture more effective,truly achieve the optimal allocation of resources,and enhance the core competitiveness of the company.Therefore,as an important way of asset restructuring,asset divestiture has received extensive attention from the society.The company announces the implementation of the divestiture to the internal management and the performance of the capital market.Will have a significant impact.By stripping off non-performing assets,non-main businesses and businesses that are not suitable for long-term development goals,companies can enhance their business concentration,return the company to the most competitive or promising business areas,and enhance market competitiveness.The financial situation is stable gradually,the stock price low value performance and the company image also obtains the improvement,then enhances the company value.In a word,the research on the performance of asset divestiture of listed companies is of great significance both in theory and in practice.