Analysis On The Motivation And Wealth Effect Of The Assets Stripping Of SANY Heavy Industry

With the rapid development of the economy,businesses have more choices,and some listed companies are expanding blindly in order to pursue diversification,which makes the main business too scattered and loses core competitiveness.In this situation,the company's development is limited,operating efficiency is low,and resources are excessively wasted.Therefore,many listed companies choose the reorganization method of asset divestiture to improve the corporate structure,adjust the business direction,and improve the financial crisis.However,due to the late start of China's capital market,domestic scholars' research on asset divestiture is also immature.Sany's work is a leading company in the construction machinery industry,and its asset divestiture during the downturn of the industry is very representative.Therefore,it is important to study the cause and performance of the company's asset divestiture.In this article,SANY Heavy Industry transferred related assets to SANY Group and SANY Technology 2016 as the research object.First,the background,implementation process and characteristics of asset divestiture are explained in detail.Then based on the financing theory,efficiency theory and refocusing theory,a deep analysis of the reasons for the divestiture of assets.Then use financial indicators to analyze the performance changes of the company before and after the divestiture.Through the changes in financial data of the five years before and after the divestiture and compared with the companies in the same industry,a comprehensive interpretation of the impact of the divestiture on the company's financial performance.In terms of market performance,this article uses the event research method to analyze,including the determination of the event day,the selection of the event window period and the estimation period,the calculation method and calculation results of the cumulative excess return,and finally a comprehensive evaluation of the market performance.Finally,according to the above analysis,several enlightenments and final conclusions for listed companies are sorted out.The final conclusions point out:(1)The divestiture of assets can improve the short-term performance of the company.After the divestiture of assets,Sany Heavy Industry has significantly improved its financial indicators and corporate value.The company's cash flow has increased,and it has successfully reversed the situation of losses that year.(2)Strategic asset divestiture can improve the long-term performance of the company.At the same time as the asset divestiture,Sany actively proactively responds to the policy and develops the market.This series of strategic decisions will help the company achieve sustainable development.(3)Insufficient disclosure of corporate accounting information will have a negative impact on market performance.The stock price represents investors' expectations of the enterprise.Insufficient information disclosure will affect investors' judgment.