Motives And Performance Analysis Of Assets Stripping Of Sante Ropeway

With the continuous development of China’s financial market and the improvement of the investment environment,more and more listed companies are expanding their operations,obtaining more benefits,and expanding their capital to achieve the goal of diversified operations.However,if we pay too much attention to the scale of the enterprise,the management system cannot keep up with the expansion of the scale,which leads to the waste of a large amount of resources,affects the normal operation of the enterprise,and jeopardizes future development.In this context,in order to reduce working capital and return to the main business,companies often adopt two methods of asset divestiture and reorganization to improve the financial status and operating efficiency of the company.This article takes the listed company Wuhan Sante Ropeway Group Co.,Ltd.(hereinafter referred to as Sante Ropeway)as the basic case to study.By collecting relevant materials and data on the divestiture of Sante Ropeway,it draws on the study of the performance of the divestiture of domestic and foreign listed companies.Based on the theory,the company’s general situation,shareholding structure,financial status,and implementation of divestitures are explained in detail,and the motivation and performance analysis of its divestiture are focused on.In-depth research on divestiture performance from both financial and non-financial perspectives.From the perspective of financial performance,non-recurring gains and losses generated by the company after the divestiture can improve corporate performance,improve profitability,and ease corporate debt pressure in the short term;From the perspective of non-financial performance,asset divestitures have positively responded to the short-term response of the company in the capital market,generated a lot of excess returns,got rid of the company’s fate of ST,and enhanced the company’s competitiveness.The research in this paper finds that asset divestiture has a significant effect on improving the short-term business performance of the enterprise,but it does not have a significant impact on the medium-and long-term development strategy of the enterprise.When the company is in the trough of development,asset divestiture becomes an important means to help the company maintain normal development.The research in this article hopes to provide some reference opinions for the future development of China’s listed companies.