A Study On The Impact Of Divestiture On The Performance Of Listed Companies

With the continuous improvement of the market economy system,it is difficult for a single business to meet the needs of corporate development.More and more companies adopt diversified strategies and expand their businesses through mergers and acquisitions and reorganizations.However,with the increase in business,companies face operational risks It is also getting bigger and bigger.Many companies are experiencing loss-making business,which seriously restricts their development.Companies need to find ways to improve their financial situation.At the same time,with the continuous development of enterprises,they are often faced with the need to expand their business but cannot meet the demand for cash flow.However,the existing business cannot play its due benefits and occupy the cash flow,resulting in a waste of resources.In order to solve the above two problems,asset divestiture,as an important method of asset reorganization,is increasingly being used by enterprises.In recent years,with the continuous improvement of asset divestiture,many scholars at home and abroad have enriched the theoretical and practical research on asset divestiture,providing reference for enterprises,helping enterprises alleviate financial crisis,promoting rational allocation of resources,and helping enterprises to carry out strategic transformation.Enhance the core competitiveness of enterprises.This paper takes J company as the research object,analyzes the impact of J company on corporate performance after the asset divestiture,and uses literature analysis,case analysis and comparative analysis methods to conduct research.This article first summarizes the domestic asset divestiture theory,mainly analyzing the concept of asset divestiture,the motivation of asset divestiture and the impact of asset divestiture on company performance.Through a detailed interpretation of the company J’s 2017 divestiture of the vehicle business,it analyzes the motivations of J company’s asset divestiture,the process of asset divestiture,and the changes in J company’s financial performance and non-financial performance after the asset divestiture for theoretical and data analysis.The study found that the divestiture of assets had a significant impact on the short-term performance of J company,and it was temporarily out of financial difficulties.However,the impact on the company’s long-term performance is not obvious,and it faces greater risks.Company J needs to discover its existing problems while summing up the experience of this asset divestiture.so as to enhance the company’s long-term competitiveness.Finally,based on the research on the impact of J company’s asset divestiture on its performance,it draws enlightenment,and puts forward a series of suggestions from the three perspectives of listed companies,investors,and regulators.