Related Divestiture, Tunneling And Firm Performance

Based on the principal-agent theory,dispersed ownership enterprises,management of the shareholders of the company's management to implement effective supervision,and concentrated ownership of enterprises,the actual control of the major shareholder of companies,and with control of the rights to manipulate the business decision-making,from the purpose of profit,and thus also transferred to the agency problem major shareholders of small shareholders.In recent years,asset divestiture has attracted more and more attention from enterprises.Especially when the diversification strategy is under constant impact,the number and amount of asset divestiture are increasing rapidly.Because of China's capital market is not perfect,the process of corporate divestiture transactions,to find suitable trading objects,set high cost reasonable transaction price,so companies tend to choose the relatively simple operation,low transaction costs associated with divestiture.However,China's listed companies are highly concentrated,and whether large shareholders will carry interests in the process of related divestiture transactions,there are relatively few studies.Therefore,this paper attempts to take the "divestiture transaction--whether there is a transfer of interest--business performance change" as the research framework,and discuss the influence of large shareholders' interest in tunneling or supporting on business performance in divestiture transaction.This paper mainly uses the method of normative research and case study combining the implementation of the the Great Northern Wilderness environmental protection and beyond as relevance of divestiture transactions as the research object,through comparative analysis of process,transfer of benefits and business performance of the implementation of the divestiture of the two companies,the research related transactions under the divestiture of whether there is a transfer of benefits and behavior.Tunneling behavior and what kind of impact on the stripping performance.The study found that association of divestiture transactions,stripping scheme,stripped assets pricing and transaction information disclosure will become the means of transfer of benefits of large shareholders,major shareholders by manipulating the behavior control the tunneling direction;in addition,themanagement layer will become poor guarantee tunneling behavior large shareholders.Secondly,according to the change of the divestiture of interests in the process of conveying direction will lead to market performance,the positive changes in support of major shareholders will lead to short-term market performance,and the tunneling behavior will lead to short-term market performance negatively,in addition,if the assets are stripped of bad assets,and in accordance with the needs of the future development of the company,the company long term market performance will be positive,on the other hand,if it is to divest assets only to satisfy bukui needs,and potential profitability is larger,the market performance in the long term will reduce or even negative.Finally,different directions of interest transmission in asset divestiture will also lead to different pursuit of financial goals for enterprises.The asset stripping under interest support is mainly for the pursuit of growth of enterprises,and the divestiture of assets under interest will pay more attention to profitability of companies.Based on the above research,this paper makes some suggestions on the regulatory and listed companies.