The Impact Of Yunnan Baiyao Divestiture On Business Performance

Divestiture of assets and M&As are the reorganization ways of rearrangement and combination of assets of contemporary enterprises.However,in the theories field,the research passion on asset divestiture is far lower than that on enterprise merger and acquisition,and so far the relevant theoretical system is far less complete and comprehensive than that of merger and acquisition.In real life,divestiture of assets is often regarded as a sign of periodic failure of enterprises,while merger and acquisition of enterprises is often regarded as a symbol of successful development of enterprises.Therefore,this paper chooses asset stripping as the research direction,aiming to break the stereotypes of asset stripping and understand its practical impact on enterprise operation.In this paper,Yunnan Baiyao Group Co.,Ltd.is selected as the research object for the asset-stripping event of Yunnan Baiyao real estate Co.,Ltd..Relevant research was carried out using literature analysis,case analysis,accounting research,and event research.First of all,i begin to learn about the relevant theory and literature of asset stripping;Then combined with the background and process of the case,i analyze the motivation and type of the stripping.I got conclusion that reconciliation is the focus of this divestiture;And the accounting method is adopted to compare the financial indicators of Yunnan Baiyao before and after the asset divestiture incident to understand the impact of the divestiture on various aspects of the company's capabilities.Some of the indicators were compared with listed market enterprises with similar market value to eliminate the impact of the market environment,and the event research method was used to analyze the market reaction of Yunnan Baiyao.I learnthat the performance and earnings of Yunnan Baiyao in the stock market before and after the divestiture,including the listing of pharmaceutical companies in the same period to further prove the impact of such divestiture on stock price performance.According to the research of Yunnan Baiyao Group Co.,Ltd.The asset divestitures only have a positive impact on the company's performance within a time span of half a year to about one year after the divestiture event.But In the long run,it has not fundamentally improved the company's operational capabilities.However,the divestiture has achieved a certain effect and met most of the preset goals.In general,it is still a correct and necessary choice.It is not the ultimate goal of this paper to study the single asset divestiture event of a single enterprise.After comparing the divestiture of Yunnan Baiyao and the joining of other listed pharmaceutical companies,the authoralso gained some inspiration for listed companies in similar situations:Asset divestiture is an inevitable choice after the diversification failure;Asset divestiture must always be in line with corporate development strategy;Initial preparation work of asset divestiture is essential;The main business development after the divestiture of assets is the most important.