Research On The Motivation And Performance Of Asset Divestiture Of Listed Companie

In recent years,due to the slowdown of economic growth,the reduction of policy support and the decline of market demand,the performance of many enterprises shows a downward trend.In the face of greater business pressure,many enterprises will adopt contraction strategy in order to improve their business structure and improve their profit margin.As a way of enterprise contraction strategy,asset stripping can effectively help enterprises quickly realize non current assets or reduce liabilities in the short term,so as to beautify financial statements and improve enterprise profits.However,in the long run,whether it can substantially improve enterprise performance and effectively enhance the value of the enterprise still needs to be further judged.Therefore,it has important research value for the performance changes of listed companies after asset divestiture.It is also hoped that this research can provide reference for other listed companies to implement asset divestiture.This paper takes the stripping of nearly 9 billion assets of vanadium and titanium from Panzhihua Iron and Steel Co.in 2016 as an example to analyze.Firstly,find out the key drivers of this transaction,and then analyze its impact on market performance through the event research method.In terms of financial performance,form a more comprehensive evaluation by comparing the analysis of itself and the industry.Finally,analyze the changes of enterprise management efficiency according to the management performance indicators,Qualitative and quantitative combination to judge whether this transaction substantially improves the enterprise value.Through the research,this paper draws the following conclusions: the main motivation for the implementation of asset divestiture of vanadium and titanium in Panzhihua Iron and Steel Co.is to quickly improve the business performance and get rid of losses;The divestiture significantly improved the company’s long-term market performance,enhanced the company’s management efficiency,and finally led to the rise of share price and increased shareholder wealth;However,due to the stripping of the main business,the operation of the company mainly depends on the market performance of vanadium and titanium products,which will also increase the operation risk of the enterprise to a certain extent.To sum up,this paper suggests that listed companies should follow the dynamic capability theory and deploy expansion and contraction strategies according to the development status of enterprises,so as to effectively realize asset stripping and improve the market value of the company.Investors should strengthen risk prevention awareness and protect relevant interests in this process.