Study On The Motivation And Performance Of Assets Divestiture Of Listed Companies

With the development of the market economy,especially the practice of capital markets,the frequency and scale of divestiture of Chinese corporate assets is continued increasing.However,the divestiture of most companies has been hidden behind asset restructuring,and the academic community has not enough Research enthusiasm.The existing research results focus on financial performance analysis,but do not comprehensively analyze the motivation,strategy and performance of corporate asset divestiture,and fail to answer the question about how asset divestiture can create value for shareholders.This article will adhere to the principle of theory and practice,and take the multiple asset divestitures of OCT Group's listing platform(OCT and OCT(Asia))in2017 as the research object,and face the divestiture from the macro level of the industry and the micro level of the company.The decision-making background and the basic situation of the stripping behavior are introduced.Based on the motivational roots of asset divestiture,the reasons for the four asset divestitures of OCT in 2017 are analyzed,and the market reaction effect of each behavior is examined by the cumulative excess return rate(CAR).Finally,we will understand the impact of the2017 total asset stripping decision on financial performance and overall performance with financial indicators and economic value added(EVA)trends.In the analysis process,this paper finds that the asset divestiture based on financing demand is mostly a means to alleviate cash flow pressure or operating profit,and it does not help the improvement of long-term operating conditions.Enterprises should,according to their strategic positioning,proceed from the perspective of optimizing resource allocation,actively implement strategic asset divestiture at the right time,and concentrate more high-quality resources in the core business or other profit growth points of beneficial company development through asset divestiture.Further diversify the company to create more value for the company and help the company achieve continuous improvement in long-term performance.The above results hope to provide some reference for the similar companies to adopt asset divestiture and provide some suggestions and guidelines for the divestiture selection and implementation of divestiture assets.