Research On Motivation And Value Effect Of Asset Stripping Of Baosteel

With the development of economy,the improvement of corporate governance,the divestiture of assets,as well as the merger and acquisition of enterprises,has gradually become the means to be taken into account in the process of enterprise restructuring.However,in the theoretical circles,asset stripping is not as enthusiastic as corporate mergers and acquisitions,and there is no consensus on how divestiture affects performance.There are few researches on divestiture behavior,and the related literature on intrinsic motivation,means and performance are discussed.Therefore,this paper selected Baosteel as an example,to explore the real motivation of Baosteel in asset stripping process is what,if indeed as expected so successfully and the short-term and long-term performance of listed companies will have the positive impact.On the basis of research and analysis,this paper puts forward some conclusions and suggestions on the suitability of divestiture.The Baoshan Iron Steel Co(600019)divestiture to a wholly owned subsidiary of the controlling shareholder of the company and the controlling shareholder’s Baosteel Group,Baosteel Special Steel Co.Ltd.and Shanghai Baosteel Stainless Steel Co.Ltd as research object,firstly,the divestiture background and implementation plan are introduced;secondly from the core theory,financing theory hypothesis motivation,efficiency theory hypothesis and the earnings management hypothesis on the perspective of asset stripping is analyzed;then calculates the cumulative abnormal return(CAR),buy and hold the excess rate of return(BHAR)and analysis of financial indicators to evaluate the effect of asset stripping;finally analysis,optimize the asset structure through the divestiture the way of Baosteel,overall success.Baosteel shares in the choice of the road of divestiture,the size of the situation,according to their own conditions,the trend of the capital market,the future development of the iron and steel industry,the comprehensive consideration,the decision is wise.The behavior of divestiture of Baosteel is helpful to market performance and financial performance.