Research On The Performance Impact Of Continuous Asset Divestiture Of Renfu Pharmaceutica

With the rapid development of our economy,many domestic enterprises closely follow the industrial hot spots to expand their industrial scale and diversify their development.However,they do not pay attention to the re-integration and effective allocation of resources after asset reorganization,which leads the company into the situation of management difficulties and cost increase.In this environment,enterprises expect to return to the main business or reconfigure internal business resources through asset stripping,so as to improve their core competitiveness and operating efficiency and promote their long-term development.Whether asset stripping can improve the efficiency of enterprise resource allocation and improve enterprise performance has been paid more and more attention by Chinese scholars.Based on this,this paper takes asset divestiture as the research direction,takes Human Health Pharmaceutical Group Co.,LTD.’s asset divestiture for five consecutive years from 2017 to2021 as the case,and studies the impact of continuous asset divestiture on corporate performance and its internal influence mechanism with the logical structure of "motivation of divestiture--performance of divestiture--impact mechanism".It is hoped to enrich the research on the influence mechanism of asset stripping on enterprise performance,and provide certain reference and suggestions for pharmaceutical enterprises and other enterprises preparing to implement asset stripping in the future.Based on the normalization theory,financing theory and efficiency theory,this paper reviews and analyzes the five consecutive years of asset divestment of Human Health Pharmaceutical from 2017 to 2021,excavates the real motivation for implementing continuous asset divestment of Human Health Pharmaceutical,and uses financial and non-financial indicators to comprehensively analyze the impact of continuous asset divestment on the financial performance of Human Health Pharmaceutical.Based on the theoretical analysis above,the specific influence mechanism of continuous asset divestiture of Human Health Medicine on corporate performance is expounded.The research found that after the implementation of continuous asset stripping,Renfu Pharmaceutical gradually improved the clarity of the main business,strengthened the operation of the remaining assets by using the financial and management resources released by asset stripping,focused on the core business,and gradually paid attention to the investment of strategic resources such as research and development and human capital,which promoted the improvement of the company’s innovation ability and core competitiveness.In addition,The asset divestiture has eliminated the negative synergies among various businesses to a certain extent and driven the improvement of the company’s operating efficiency.In general,continuous asset divestment promoted the development and progress of Human Fortune business,and improved and promoted corporate performance to a certain extent.