The Performance Research On Shandong Iron And Steel Company Ltd’ Asset Stripping

As early as the 19th century,western countries have set off a wave of mergers and acquisitions for the purpose of transaction.China also occupies an important position in the capital market due to the rapid development of the global economic pattern.As a means of capital market transaction,asset restructuring can optimize the allocation of enterprise resources,relieve the pressure of operation,adjust the strategic layout,and improve the competitive advantage of enterprises.Asset divestiture is one of the main ways of asset restructuring.Many listed companies divest non-performing assets in this way to achieve the purpose of shrinking the internal operation line and returning to the core competitiveness.This paper is based on the three divestitures of Shandong Iron and steel company.The research cycle runs through the whole process of the event.At the same time,it deeply analyzes the causes of the event.The results show that the divestitures of Shandong Iron and steel company,on the one hand,have to move heavy pollution sources out of the city due to the pressure of environmental protection policies,on the other hand,are also strategic exploration under the pressure of financing,The first two divestitures are more reflected in the demand for financing,while the third divestiture has a clear strategic positioning,that is,the business transfer from inland to coastal.In the aspect of performance research,according to the different types of divestiture,this paper analyzes the market performance and financial performance respectively,and uses the event study method to analyze the short-term market performance of three divestitures.It is found that the tactical divestiture of non main business can gain positive market reaction,and the tactical divestiture of main business is not conducive to the benign changes of the stock market,Strategic divestiture will bring positive effects.In the aspect of financial performance,it is found that asset divestiture can improve the solvency and operation ability of enterprises,and strategic asset divestiture can also improve the profitability.However,for the development ability,asset divestiture does not play a big role,and has little effect on the expansion of enterprise operation scale;From the perspective of EVA economic value added,strategic asset divestiture can maintain a long-term stable and progressive business situation.According to the research and summary of Shandong Iron and steel company,it is found that different motives have different effects on the performance of divestiture activities.This paper hopes to help Shandong Iron and steel company find and solve problems through the research of divestiture activities,and also provide reference for other enterprises’ divestiture activities.