Case Study On The Divestiture Of Shandong Iron And Steel

With the development of capital market,in the enterprise development diversification strategy,resulting in a hot "wave of mergers and acquisitions" at the same time,the contraction of the capital operation mode-asset stripping is also increasing year by year.Asset divestiture in the developed western countries capital market has long been frequently used,China's first implementation of the divestiture of assets in the state-owned enterprises restructuring and reorganization stage,with China's capital market continues to improve,more enterprises have begun to use assets divestment shrink capital,Return to the main business,optimize the allocation of assets,access to funds.At present,the research method of asset stripping is mainly based on empirical research,through the large data research on the effect of asset stripping,the use of case studies on individual case divestiture research is less.Therefore,the study of individual cases of asset divestiture behavior and the specific company through the divestiture of assets to achieve the purpose of divestiture to achieve the purpose,to more in-depth analysis of whether the divestiture of assets to the company to create value,but also through the case of assets divestiture experience,Put forward other companies should pay attention to the issue of asset stripping,but also enriched the divestiture case study literature.In this paper,the study of asset divestiture is mainly from the four factors such as the motive of the divestiture,the choice of timing,the choice of assets and the economic consequences of stripping.The reasons for the divestiture are diversified.This paper will start from the two aspects of the industry and the company.Through the analysis of the timing of the divestiture of assets and the choice of assets,the paper analyzes the deep divisions of Shandong iron and steel assets.At the same time,this paper uses the market adjustment model in the event research method to evaluate the market reaction from the aspects of market reaction and financial performance.This paper evaluates the market reaction by using 10 financial indicators,,Operational capacity,profitability,development ability of the four aspects of Shandong iron and steel assets after the evaluation of the financial performance.Through the case study,it is concluded that Shandong Iron and Steel is stripping off the assets carried out in the background of "internal and external attack";the divestiture of Shandong Iron and Steel has improved the short-term performance of the company,but has improved the long-term performance of the company It is not obvious;divestiture of different assets on the company's financial indicators are also different;tactical divestiture can improve the ability of the enterprise solvency,the strategic divestiture of the enterprise's ability to develop,solvency,profitability Increased.Based on the conclusion of the case analysis,this paper puts forward some suggestions on other companies that have been divested by assets:should pay attention to the improvement of management level;take the initiative to carry out the divestiture of strategic assets;grasp the best time to divest the assets;regulate the information about the divestiture To deepen the reform of enterprise system and mechanism.