Motivation And Performance Analysis Of Zhangze Power Assets Divestiture

In recent years,with the continuous enhancement of my country’s national strength,the rapid economic and social development,and the continuous improvement of the operation mode of the capital market.As a way of asset reorganization,asset divestiture has played an important role in the development of enterprises.Asset divestiture can improve asset quality,improve enterprise performance,optimize resource allocation,and enable enterprises to exert their own competitive advantages.Therefore,it has become an important development strategy for enterprises.More and more enterprises begin to use this method to boost their own development.However,the current research on asset divestiture by Chinese scholars is still very limited,the literature on the motivation and performance of asset divestiture is not abundant,and many conclusions have not reached a consensus.At present,the government has issued a supply-side reform policy,and has made this policy the top priority of development.Higher requirements,the strategy of asset divestiture coincides with the purpose of supply-side reform,both to better improve the operating efficiency of enterprises.Therefore,in the context of the current era,an in-depth analysis of the motivations,plans and performance of asset divestitures also has practical significance for helping companies respond to supply-side reforms and speed up the pace of quality and efficiency improvement.In this context,this paper adopts the case analysis method,taking the case of asset divestiture of Shanxi Zhangze Electric Power Co.,Ltd.as an example,firstly introduces the relevant theories about asset divestiture,such as efficiency theory,resource optimal allocation theory,etc.,and then elaborates in detail Based on the background,plan and characteristics of this asset divestiture,and then combined with the actual situation and theoretical basis,the reasons why Zhangze Power chose to divest from the external environment and internal operation were deeply analyzed.Thirdly,through the event analysis method and the financial index method to analyze the performance changes before and after the divestiture with Zhangze Power Assets:In terms of market performance,this paper uses the event research method to calculate the cumulative excess rate of return with the linear regression equation,and then according to the calculation results A comprehensive evaluation of market performance is carried out;in terms of financial performance,this paper refers to the "Detailed Rules for Performance Evaluation and Evaluation of Central Enterprises" issued by the State Council,combined with the actual situation of Zhangze Electric Power,selects some financial indicators,and analyzes the changes in financial data before and after asset stripping.And the comparison with enterprises in the same industry,combining qualitative and quantitative,horizontal and vertical,comprehensive,objective and three-dimensional analysis of the impact of asset divestiture on the financial performance of enterprises.Finally,through research,this paper finds that divestiture can improve the short-term performance of the company,increase the company’s cash flow,and reverse the loss situation.At the same time,according to the conclusion,this paper summarizes the universal revelation,that is,asset divestiture should choose appropriate strategies,timing,and strengthen the information disclosure before divestiture,which provides a reference for other companies that will or want to divest assets.