Performance Analysis Of A-Shares Listed Companies' Divestiture

Divestiture and mergers are the important ways of corporate restructuring. Divestiture is very important for the enterprise to return to the main business, improve the liquidity of assets, reduce the risk of operation, increase the income of the enterprise itself and so on. Therefore, more and more scholars and enterprises pay more attention to the asset stripping and it occurred frequently. So what is the reaction of the listing Corporation's assets before and after the divestiture announcement? What are the reasons and methods of corporate divestiture? which kind of way Enterprises will choose be better? These questions are all worth our in-depth research. So this paper attempts to collect data and information in the securities market, analysis of the corporate divestiture phenomenon of listing Corporation. First, this paper introduced the theory of asset stripping, and then described the main research results at home and abroad that focusing on the current situation of listing Corporation assets stripping. It is mainly introduces the ways and reasons of the asset stripping of listing Corporation in our country. Which is Different from other scholars just analysis the results or the ways of the asset stripping,this paper subdivide the samples,and combine the stripping methods and reasons to analyze the influence of different ways of asset stripping because of different reasons on the enterprise. On the one hand, this paper uses factor analysis to compare the financial situation of enterprises before and after stripping, which is the long-term impact on asset stripping analysis, on the other hand, the excess returns before and after stripping to compare the impact of asset stripping on the short-term wealth of enterprises. The analysis found that in the long term, the effect of asset stripping on the enterprise is more obvious then equity carveout. The result of divestiture because of different reasons when they equity carve-out or stripping physical assets. We hope the analysis of this paper can give reference in the actual operation of the enterprises, and provide help for the future development of enterprises.