Reserch On The Motivation And Performance Of Divestitures Of COSCO

Divestiture is a contractive way of capital operation,an important form of asset restructuring,and an important corporate strategy,which has a profound impact on the company’s future business performance.Since the introduction of divestiture at the beginning of the 20 th century,the number and scale of divestiture in China has been increasing every year,especially since 2007.Under the double pressure of international financial crisis and domestic economic transformation and upgrading,the number and scale of divestiture in China’s listed companies reached the highest level in 2008,and divestiture as the main part of the development strategy One of them has significant effect on improving resource allocation,adjusting industrial structure and improving enterprise value.So far,divestiture is more popular among foreign enterprises,and has developed into a relatively mature capital operation method,so it is necessary to pay attention to and study it.COSCO Holding Co.,Ltd.(hereinafter referred to as "St COSCO")is the leader in the domestic shipping industry and has the background of state-owned enterprises.However,two years of huge losses make it a ST listed company,facing the delisting crisis.It is typical for St COSCO to improve its business situation and get rid of the delisting crisis through divestiture.So this paper chooses St COSCO as an example,based on the refocusing theory and efficiency theory,and adopts the event research method and financial index method to keep the ocean transportation market in the depressed background of unbalanced supply and demand,increasingly fierce market competition and so on Combined with the actual situation,this paper analyzes the motivation and principle of St enterprise’s asset divestiture,and evaluates the performance of St COSCO’s asset divestiture from two aspects of market performance and financial performance,so as to put forward the conclusion and Enlightenment for asset divestiture,and puts forward some feasible solutions for some problems of asset divestiture.Through research and analysis,this paper gets the conclusion that the short-term performance of St COSCO’s divestiture is improving rapidly,but the long-term performance is not obvious,and finds that there are differences in the divestiture performance of enterprises driven by different motives.In order to focus on the main business,eliminate the negative synergy effect,and meet the changes of the business environment,enterprises obtain significant and positive long-term divestiture performance;in order to reduce debt In order to get rid of financial difficulties and improve the company’s financial situation,the company often obtains significant and positive shortterm divestiture performance,but this improvement is often unsustainable.Finally,the paper puts forward some suggestions on the effectiveness of St enterprise’s divestiture in order to help the divestiture activities of Chinese enterprises go on a more healthy and long-term development path.