Empirical Research on the Impact of Asset Divestment Capability on the Performance of Chinese Listed Companies

Abstract

With the rapid change and growth of market and technology, more and more listed companies make the divestiture decision to improve the performance. Different companies have different asset divestment ability which impacts the decision of the asset divestment and the performance it produces and has been an obstacle to make a strategic adjustment and change at an appropriate time. Based on the extant theoretical study of the asset divestment capability and its impact on performance, this paper puts forward the hypothesis of the impact of the listed company’s asset divestment ability on the performance and draws the conclusion through Factor Analysis and Correlation Analysis to verify the initial hypothesis with the purpose to improve asset divestment ability to better the performance.