Research On The Motivation And Economic Consequences Of Assets Divestiture Of Minsheng Holding

In the stage of rapid development of capital market,many listed companies expand their business scale by mergers and reorganizations in order to reduce business risks and achieve economies of scale.However,with the improvement of the capital market,the drawbacks of over-diversification gradually emerge.More and more listed companies begin to pay attention to the tightening strategy.As an important way of enterprise restructuring,asset divestiture has been paid attention to.Western financial theory researchers first began to study asset divestiture,and it was perfected in the wave of restructuring in Western countries.Asset divestiture has a positive impact on inventory assets revitalization,resource allocation optimization and corporate strategy adjustment.This paper chooses Minsheng Holding Company as a case study by combining theoretical research with practical research.It mainly studies three asset divestitures of Minsheng Holding Company from 2011 to 2016 in order to realize strategic transformation after China Pan-Sea Holding Group became the controlling shareholder of Minsheng Holding Company.Firstly,this paper elaborates the related research of domestic and foreign asset divestiture,and introduces the related theory of asset divestiture.Then,it introduces the basic situation of Minsheng Holdings,and analyses the background,process,type and motivation of the three assets divestiture of Minsheng Holdings.After that,this paper separately divides three assets,first from the solvency,profitability,development ability and operation ability of Minsheng Holdings to analyze and evaluate the impact of assets divestiture on the financial performance of Minsheng Holdings,then based on EVA to analyze the performance of assets divestiture operation,and finally analyze the performance of Minsheng Holdings stock market before and after asset divestiture,and then comprehensively evaluate the effect of asset divestiture and its economic consequences.According research,the types and motivations of the three asset divestitures of Minsheng Holdings are different,and the economic consequences of the three asset divestitures are also different.Finally,through reasonable analysis and summary,this paper puts forward some suggestions for enterprises planning and implementing asset divestiture to achieve business transformation objectives: linking asset divestiture with development strategy to promote the overall development of enterprises;attaching importance to the pre-layout and divestiture mode of asset divestiture;and attaching importance to the operation and management after asset divestiture.