A Study On The Predictive Effects Of Division Information On Divisional Division Of Listed Companies

Under the background of world economic integration, diversification of listed companies like the tides,the majority of information users have a strong demand for information. Divestitures of segments of corporations are important events to the corporations.Numerous studies show that divestitures are associated with on average positive abnormal stock returns to divesting firms upon announcements.Recent studies also report evidence that divestitures are associated with significant improvement in operating performance in post-divestiture years.In addition,several papers suggest that divestitures may cause wealth transfer from debt holders to shareholders.Therefore,not surprisingly, divestiture decisions draw attention from shareholders, creditors and financial analysts.However, almost no literature study the major effect of accounting information on the divestiture, in particular the segment information.A number of observers and studies that divestiture are not random events but are driven by forces originating at industry,firm and sub-entity levels.In view of the degree of importance of the segment information is improve, related research is increase rapidly. Study of segment information in our country is mainly concentrated in the listing Corporation of segment information disclosure and quality, the segment information decision usefulness,and segment reporting standards implementation effect, empirical analysis and so on,but the lack of empirical research on the segment information prediction divestiture effect to the listed corporations.This paper aims to study the prediction role of segment information to divestiture, in the present study, we are based on existing accounting economy literature,then established a probability model.we will evaluate the model using the previous segment information peeling a year ago, the research the segment information for predicting divestiture.The paper selects all A share listing corporation in the year of2011and2012, by removing filters, get a total of358observations.By selecting behalf of the company and segment features explanatory variables, adding control variables to build probabilistic model,performed logistic regression analysis.Empirical studies have found the probability of the explanatory variables and the segment divestiture of all there is a significant correlation.First, peel and segment information to define the concept and content, segment describes the theoretical basis of segment information on this study and peel, followed by finishing the status of relevant literature and research content that is not involved in drawing analysis has theoretical framework based on the extension of the research object and research methods.Secondly, this study identified variables and assumptions and established research model proposed by assuming the existing literature and so on.Variables include operating return SROAS、return on assets ROAF、Financial Leverage LEVRGF and segment scale SIZES four explanatory variables.OPER operational efficiency、 OWNER corporation owner、LOSS the previous year profit and loss、BUSINESS diversification、SIZE scale of enterprises、PROFIT profitability、SHORT short-term cash needs seven control variables.Finally, the empirical analysis using the method of logistic regression to verify hypotheses and make suggestions.The main conclusions of this study:Corporate business returns and the possibility of segment divestiture showed a negative correlation.Enterprise assets return rate and the possibility of segment divestiture showed a negative correlation.The corporations’ leverage ratio and the possibility of segment divestiture showed a positive correlation.Segment-scale and the possibility of segment divestiture showed a negative correlation. Finally made a research study summary, conclusions and describes some of the inadequacies of existing research, and policy recommendations.