Study On The Economic Consequences Of Z Company's Asset Peeling

With the maturity of China's capital market,asset divestiture has increasingly become one of the important forms of corporate restructuring of listed companies.In2018,154 listed companies in China's capital market restructured,22 of which used asset divestiture,more than half of which occurred in manufacturing industry.From230 companies in electrical machinery and equipment manufacturing industry,this paper chooses Zhong chao Holdings as the research object,studies the motivation and economic consequences of asset divestiture of listed companies,which has certain significance for revealing the essence of earnings management,enterprise restructuring and asset divestiture supervision of listed companies.Firstly,the paper systematically combs the types and systems of asset reorganization,the motivation,mode and performance of asset divestiture.Based on enterprise strategy theory and principal-agent theory,the paper analyses the motivation of asset divestiture of listed companies,and the economic consequences of asset divestiture based on transaction cost theory and stakeholder theory.Secondly,it introduces the development course,ownership structure change and main business change of China Super Holdings.Based on the introduction and analysis of macroeconomic environment,industry development and company operation before the whole event of assets stripping in 2018,it describes the process of assets stripping in China Super Holdings.Thirdly,the paper studies the motivation and economic consequences of asset divestiture of China Super Holdings.In order to evaluate the economic consequences of asset divestiture,this paper analyses the impact of asset divestiture on enterprise operation and market value.It is found that the divestiture of assets only improves the company's short-term operating performance,and the positive reflection of capital market is limited to the short-term time limit.It does not fully improve the company's operating level,nor does it create long-term value growth for enterprises and shareholders.Then,this paper analyses the influencing factors of the economic consequences,and finds that the divestiture of assets is the inevitable result of the bundling of the interests of Shenzhen Xintenghua and China Super Group.The divestiture of assets of China Super Holdings is essentially a short-term earnings management and market value management behavior,ignoring the improvement of the long-term managementlevel of the company.And in the process of asset divestiture,the internal governance environment of the company is not perfect,so that the occurrence of asset divestiture can not really play its due positive role.Finally,this paper puts forward the enlightenment and policy suggestions of asset divestiture of China Super Holdings.In order to give full play to the positive effect of asset divestiture,listed companies should actively implement strategic asset divestiture in a timely manner,pay attention to the integration of corporate business after asset divestiture,and establish a long-term evaluation mechanism to enhance corporate governance.In order to promote the rational development of asset divestiture,we should standardize the divestiture behavior of listed companies,pay attention to the protection of stakeholders' rights and interests,and strengthen the role of intermediaries in identifying asset divestiture.