Study On Divestiture Theory Of Enterprise

The skill of contraction boosted from 80' in west countries. Divestiture, as part of this skill, plays an important part in advancing the efficiency of inventory assets and adjusting industrial structure. Divestiture has been applied widely overseas, which has become a well-rounded capital operational mode. The west countries have researched the appliance of corporation assets deeply and formed systemic theories of divestiture in the long-term market economy practice. The history of foundation and development of the security business in our country is not long, so divestiture is a new form. Divestiture boosted fast after 1998 in our country, and was gradually becoming one kind of important tool to manipulate capitals for listed companies. So, in this thesis, we mainly make some theory study on divestiture, and it will be helpful to the practical operation of divestiture in our country.Firstly, we discuss the purpose and the significance of the research, and then review various theories which were contributed by different scholars in domestic and abroad. Based on these theories, we make the definition of divestiture, set forth the theoretic basis and the theory of performance about divestiture, and review the development process of divestiture in the world. We believe that these efforts will be beneficial to establish the foundation for the following study.Secondly, we make the research on the 3 basic kinds of divestiture types. The 3 basic kinds of divestiture types are sell-offs, equity carve-out, spin-offs .We give a conclusion on the 3 types and analyze the different motivation about the 3 types separately, and then make comparison among them. The theory of divestiture will be perfect by analyzing the basic kinds of divestiture types.Moreover, based on the systematic theory study on divestiture of enterprise above, we build up the decision-making model of divestiture, and analyze the risk sources of divestiture on the basis of this model, then point out the methods to evade the risk of divestiture. Besides, in order to guiding practice better, we also build up the performance evaluation system of divestiture. We get the conclusions as follows. In the case that the business between the parent company and the subsidiary company have no synergistic effects, as long as the sum of the extra stock value and the lost value caused by divestiture is more than zero, the sell-offs and the spin-offs can totally release the lost value caused by divestiture and form the divestiture effect value. But in the case that the business between the parent company and the subsidiary company has synergistic effects, equity spin-offs is going to be the best choice. However, because there are so many uncertain factors, it may lead to the decision-making risk and the execution risk .We can evade them effetely through introducing the professional intermediate agency and the stock option system.Finally, we analyze the conditions of the enterprises' divestiture of Chinese companies and give some advice to solve their problems. We hope the thesis will be helpful to the divestiture activity in our country.