Research On Asset Divestiture And Its Economic Consequences

In recent years,with the complexity of the market environment and the maturity of the capital operation mode,the divestiture mode has been adopted by more and more listed companies.Because of the gradual improvement of China's capital market system,compared to the non-relevance companies' high transaction cost of the divestiture,companies are more willing to choose easy to complete and can greatly reduce the transaction costs associated with divestiture.With the sharp rise in the amount of divestiture in China,the divestiture of related assets can improve the performance of enterprises and enhance the value of enterprises has become the subject of urgent research.In this paper,the comparative case analysis was carried out to analyze the background,implementation process and economic consequences of the divestiture of the related assets in order to explore the relationship between the divestiture.Whether it is to improve the business performance and enhance the enterprise value.It is found that the correlation assets are stripped not only because the shareholders cannot get the excess rate of return.The negative reaction of the market also damages the interests of the small and medium shareholders;business performance is not substantial improvement,and even a negative impact on the sustainable development of enterprises.In addition,the loss of the underlying assets of the divestiture is hidden from the interests of large shareholders of the transfer of motivation.This is the use of assets stripping enterprises to improve business performance,enhancing the competitiveness of enterprises is of great significance.