Research On The Motivation And Performance Of Yangmei Chemical's Asset Divestitur

With the rapid development of the capital market,the rapid expansion of the company’s scale has brought a series of problems,and the market is more and more enthusiastic about asset divestiture.However,the theoretical research on asset divestiture is still less than that of M & A,especially the research on the motivation,performance and underlying mechanism of asset divestiture combined with specific cases.In real life,people often regard asset divestiture as a sign of investment failure,and have not realized the positive impact of asset divestiture on enterprises.Through the research on asset divestiture,this paper hopes to have an in-depth understanding of asset divestiture and its subsequent impact,so as to change the stereotype of asset divestiture and provide suggestions and help for companies that want to improve their performance through asset divestiture.Taking the asset divestiture event of Yangmei Chemical Co.,Ltd.as the research object,this paper analyzes the motivation of asset divestiture of Yangmei chemical from the external and internal levels respectively.The analysis shows that the external motivation mainly inclu--dees industry depression and national policy changes,and the internal motivation mainly incl--udes the need to reverse losses and protect the shell,strategic transformation,replace backw---ard production capacity and optimize management structure.The economic conseue--nces are mainly analyzed from the perspectives of market performance and financial perform--ance,and further explore the internal mechanism of asset stripping affecting enterprise performance.The study found that asset divestiture has a positive impact on market performance,and the market response of the first two asset divestitures is better than that of the third.In terms of financial performance,it is found that the divestiture of Yangmei chemical assets is of positive significance to the overall financial situation of the company,especially to the obvious impro--vement of the company’s solvency and profitability.The positive impact of asset divestiture on enterprise performance is mainly realized by improving investment efficiency,improving financing structure,optimizing management and changing strategy,and the expected motiv--ation is basically achieved.Finally,according to the case study conclusion of Yangmei chemical industry,this paper puts forward suggestions for the subsequent intention of asset divestiture companies,and points out that the company should carefully use the means of asset divestiture,and asset dive--stiture should not be too frequent.At the same time,when choosing to divest assets,we should consider the long-term development and combine the long-term strategic planning and market prospect as much as possible.After the divestiture is completed,we should pay atten--tion to the cultivation of long-term ability,seize the opportunity to carry out industrial reform and improve the long-term market competitiveness of the company.