Study On The Economic Consequences Of Divestiture Of China Super Holdings’ Assets

With the maturity of China’s capital market,asset divestiture has increasingly become one of the important forms of corporate restructuring of listed companies.In2018,154 listed companies in China’s capital market restructured,22 of which used asset divestiture,more than half of which occurred in manufacturing industry.From230 companies in electrical machinery and equipment manufacturing industry,this paper chooses hong chao Holdings as the research object,studies the motivation and economic consequences of asset divestiture of listed companies,which has certain significance for revealing the essence of earnings management,enterprise restructuring and asset divestiture supervision of listed companies.Firstly,the paper systematically combs the types and systems of asset reorgani ation,the motivation,mode and performance of asset divestiture.Based on enterprise strategy theory and principal-agent theory,the paper analyses the motivation of asset divestiture of listed companies,and the economic consequences of asset divestiture based on transaction cost theory and stakeholder theory.Secondly,it introduces the development course,ownership structure change and main business change of China Super Holdings.Based on the introduction and analysis of macroeconomic environment,industry development and company operation before the whole event of assets stripping in 2018,it describes the process of assets stripping in China Super Holdings.Thirdly,the paper studies the motivation and economic consequences of asset divestiture of China Super Holdings.In order to evaluate the economic consequences of asset divestiture,this paper analyses the impact of asset divestiture on enterprise operation and market value.It is found that the divestiture of assets only improves the company’s short-term operating performance,and the positive reflection of capital market is limited to the short-term time limit.It does not fully improve the company’s operating level,nor does it create long-term value growth for enterprises and shareholders.Based on the research on the first broad access to the academic research literature on enterprise asset restructuring,define the concept of assets carried out clear,is on the research of this field is discussed to implement the comb summary,the idea of mainstream academic research point of view and the theory,assets of the listed companies of the impetus has carried out analysis and study,and demonstration analysis were carried out for its economic consequences.On this basis,combining with the actual situation of Chinese super holding company target enterprise,the enterprise’s development,capital structure,equity configuration change status of implementation of the information collection and analysis,through to the Chinese super holdings in 2018 of assets when the market macro environment,electrical machinery and equipment manufacturing industry development condition,enterprise’s operating conditions were analyzed,and the implement results of assets and enterprise are studied.Through the study found that Chinese super holdings because actually accused person change under the influence on enterprise management,in order to prevent performance of landslide,maintain the normal management order,solve the problem of loss of deficit,and assets,to better assess enterprises implement assets after the effects on the development of enterprise management,this paper studied after holding the assets,the change of enterprise operating performance and market value changes,implement the enterprise asset stripping effect of study.Found that enterprises implement assets only let in a short period after this achieved the better operating performance,and the trend of its stock price contain only work in a relatively short period of time,but not fundamentally reverse the operations of enterprises,cannot turnaround for the enterprise,to create long-term value growth space.Based on the above analysis,in this paper,the assets of enterprises under the influence of the economic consequences of implementing the factor analysis,through the study found that the corporate divestitures decisions to make,belong to the shenzhen xin hua teng with Chinese super bound on the interests of decision as a result,Chinese super holdings divestiture decisions,belongs to the enterprise value of implementing short-term earnings management and maintenance of behavior,a move that did not fully consider the enterprise long-term development planning,enterprise after make divestiture decisions at the same time,on corporate governance did not adjust the improvement of the environment and governance mechanism,which makes the enterprise’s assets measures can only produce short-term effect,But can not fundamentally improve the operation and development of enterprises,reverse the bad development trend of enterprises.For enterprise on the assets of the above problems,this paper argues that the enterprise to effectively play the positive role of assets,the assets should be fully considered in the decision-making of the positive influence and negative influence to the enterprise,in the perspective of global and continuing operations,assets fully research on the comprehensive advantages and disadvantages of the enterprise,to improve the corporate governance of enterprises,optimize the structure of capital of enterprise as the goal to make if we need to implement a divestiture decisions,so as to avoid blind decision and decision-making errors,better assets for the enterprise to reverse the adverse operating conditions,to achieve strategic goals and provide support.