Research On The Motivation And Performance Of Continuous Asset Divestiture Of Hualian Shares

With the development of economy and the update and application of technology,the business model of "Internet plus" has become more popular.Consumers can enjoy convenient and fast shopping experience online,which has caused a serious impact on the development of the retail industry.Beijing Hualian Commercial Building Co.,Ltd.is one of the earliest listed retail companies in China,with rich experience in offline retail and import and export trade operations.It completed its transformation from retail to a professional operator of shopping centers in 2008.However,due to factors such as competition in the same industry,the transformation of Beijing Hualian Commercial Building Co.,Ltd.has not been smooth.Therefore,the company conducted six consecutive divestments between 2018 and 2020 in an attempt to improve its financial condition and operational performance.This paper takes Hualian Shares as the research object,and adopts case analysis,Du Pont analysis analysis,event study,factor analysis,entropy method and other research methods to provide relevant suggestions for enterprises in the same industry to divest assets by exploring the motivation and performance impact of continuous divestiture of Hualian Shares.Firstly,this article summarizes and summarizes the research trends of asset divestment and its evaluation methods both domestically and internationally,and outlines the relevant concepts and theoretical foundations of asset divestment.Secondly,this article provides a detailed explanation of the development history of Hualian Group and the process and results of its six consecutive asset divestments.Based on this,the reasons for its asset divestments are analyzed from three perspectives: improving financial conditions,optimizing capital structure,and refocusing.Finally,in order to explore whether the divestiture has achieved the expected effect of Hualian Shares,this paper conducts a comprehensive evaluation of the financial,market and management performance of the continuous divestiture of Hualian Shares: first,financial performance analysis.This paper first uses Du Pont analysis to explore its impact from the perspective of financial indicators,and then to intuitively display the ranking of the comprehensive financial performance of Hualian Shares among enterprises in the same industry,This article also uses factor analysis to construct a common factor scoring model,in order to comprehensively analyze the impact of asset divestment on financial performance.The second is the market performance analysis.This paper uses the event study to take ten trading days before and after each divestiture of Hualian Shares as the window period and calculate the excess cumulative return rate,and analyzes the market value of Hualian Shares with its change trend,that is,the feedback of the market and consumers on the divestiture of Hualian Shares.The third aspect is management performance analysis.This article selects eight evaluation indicators from five dimensions: development and innovation,risk control,human resources,industry impact,and social contribution to construct an evaluation system.The entropy method is used to evaluate the comprehensive management performance of Hualian Group,in order to reflect the effectiveness of the company’s management measures after asset divestment.Through research,it is found that the reasons for the continuous divestiture of Hualian shares are diverse: first,return to the core business;Second,improve the financial operation of enterprises;Third,reduce the pressure on cash flow and optimize the capital structure.In addition,from the perspective of asset divestiture performance research,continuous asset divestiture can indeed improve the comprehensive performance of enterprises in the short term,but the positive impact on enterprises after divestiture is limited,and it is not suitable for the long-term development of enterprises.Therefore,this paper suggests that relevant enterprises should not blindly carry out continuous asset stripping,not only taking into account the industry development prospects,enterprise strategic development and other factors,but also seize the opportunity to take the initiative to carry out asset stripping,rather than "whitewash" the business situation by stripping assets.Only when divestiture is regarded as an important part of the enterprise’s strategic transformation can it inject new vitality into the future development of the enterprise.