Analysis On The Cause And Economic Effect Of Vanadium-titanium Asset Stripping Of Panzhihua Iron And Steel Co

Asset divestiture is one of the main means for enterprises to implement the austerity development strategy.It is of great significance to optimize the allocation of market resources,revitalize the stock assets and improve the development level of the industry.In just 40 days from September 9 to October 18,2018,the China Securities Regulatory Commission(CSRC)issued six rules on asset restructuring.The introduction of a number of policies,all show that the regulator of asset restructuring support,and asset stripping is an important way of restructuring.With diversification in recent years,more and more listed companies in China have been increasing the cases of asset divestiture,and enterprise managers need to deepen their understanding of asset divestiture.At present,most enterprises in China only choose divestiture when they face financial difficulties and carry out earnings management.However,divestiture should not be limited to the means that enterprises are forced to choose when they encounter difficulties.In fact,the use of divestiture can have a great impact on the capital structure and resource allocation of enterprises,such use of divestiture in foreign listed companies has been quite mature.Therefore,it is necessary to pay attention to the research on the causes of divestment and the economic effects of divestment on enterprises.This paper selects Panzhihua Iron and Steel Vanadium and Titanium as a case enterprise of asset divestiture,analyzes the motivation of this asset divestiture from three levels of company,industry and national policy,and analyzes the motivation and the economic effect of asset divestiture.Firstly,the market performance of the company is analyzed by using the event research method.By calculating the excess rate of return and excess cumulative rate of return before and after the announcement of the divestiture,it is found that the rate of return of the company is generally on the rise,indicating that external investors are not interested in Panzhihua Iron and Steel Vanadium Titanium.This asset divestment activity is very optimistic and maintains an optimistic attitude.Then use the comparative analysis method to analyze the long-term performance of the company.On the one hand,it compares the changes in the financial indicators of Panzhihua Iron and Steel Vanadium Titanium itself.A greater degree of improvement indicates that asset divestiture has a significant positive effect on the improvement of short-term financial performance of enterprises.However,in the long run,there is a slight downward trend.Therefore,enterprises need to continuously strengthen the cultivation of core business competitiveness to ensure long-term and stable business performance.These financial indicators have also surpassed after the asset divestiture,indicating that the asset divestiture has improved the financial performance of Panzhihua Iron and Steel Vanadium Titanium to a certain extent.Then analyze the economic added value before and after the implementation of asset stripping of Panzhihua Iron and Steel Vanadium Titanium.The results show that after the incident,the economic added value of the company has changed from negative to positive with a huge increase,and will continue to maintain in the next few years.value.Finally,this thesis summarizes the analysis of the case of Panzhihua Iron and Steel’s vanadium and titanium asset divestiture,hoping to serve as a reference for enterprises that will implement asset divestiture:first,to correctly understand and rationally use asset divestiture;second,to divest assets in combination with competition Advantages,development prospects and other factors are considered;the third is to reasonably grasp the timing of asset divestiture.