A Study On The Performance Of Assets Stripping And Its Influencing Factors Of China 's Listed Companies

Divestiture, as a way of shrinking capital operations, have been paid close attent ion to by theorists and practical circle in west developed countries, which plays an important role in relocating resource、readjusting industrial structure in time and liq uidize remnant assets.However, theorists and professionals in China don’t pay more a ttention to the asset divestiture. Then the existing research do not reach an conclusi on about is the corporate performance indeed improved through stripping some asse ts or equity. And the research about the factors affecting the stripping performance is fare. Therefore this paper focused the theme of the divestiture, and answered the two main questions with standardized analysis and empirical analysis to put forward some related suggestions raising spitting efficiency.This paper, based on the review of the researches and enterprise development pra ctice in home and abroad, elaborated the related theory from different theories, which provide the theory basis to the empirical research. Then the paper analyzed the m otivations of the corporate divestiture and the factors influencing the divestiture effi ciency in China. Next, the article put forward some assumptions, and collected publ ic companies gone through divestiture only in the same yeah from the yeah 2007 to 2010. Taking these companies as sample, the comprehensive performance score a nd the core index return on equity(ROE) as the performance, and test the performa nce change before and after the stripping through the descriptive analysis and the p aired sample T test. To study what are the factors affect the performance, this pape r established a multivariate regression model with the absolute value of the compreh ensive performance score and the ROE change as dependent variable. Lastly, put fo rward some related suggestions to raise spitting efficiency.The study found that the most of the listed companies profitability(both the comprehensive performance score and the single index ROE) improved after stripping. About the factors of the divestiture performance, the study showed that the proportion of state-owned shares and the diversification degree had a negative impact on the divestiture performance, and the supervision of independent directors and external creditors in the assets played an important role in ensuring the stripping performance. In addition, the equity concentration had no significant effect on stripping performance.