Abstract
Due to the rapid economic development, many listed companies blindly pursue diversification, resulting in the company into the main business diversification, loss of core competitiveness, performance decline and other difficulties, therefore, the means of asset stripping came into being. Taking Humanwell Healthcare as an example, this paper not only analysizes the motivation of enterprise asset stripping, but also measures the economic consequences of enterprise asset stripping from two aspects of market reaction and financial performance. In terms of market reaction, it makes a comprehensive evaluation through the event study method. In the aspect of financial performance, the financial indicators are used to analysize the performance changes of enterprises before and after asset stripping. Through the research of Humanwell Healthcare asset stripping, it can provide reference for other enterprises planning to carry out strategic contraction.
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