Study on Chinese Listed Companies Assets Stripping Motivation and Short-term Performance

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Under the domestic and international market increasingly competitive circumstances, how to improve the management efficiency, restructuring of the industrial chain, improve the core competitive ability of enterprises is the issue of China’s enterprises must face. The objective of this study is to hope that through the empirical performance of China’s listing Corporation asset market analysis, in-depth study of divestiture announcement effect on stock price, to help people fully understand the important role of divestiture in the process of enterprise development. To provide some references for formulating relevant policies to restructure decision for the company, government and regulatory departments. This paper uses divestiture announcement between 2005 and 2013 as sample data, according to the selection standards, selected 324 divestiture announcement for the final study sample, makes an empirical analysis of the market performance of assets stripping and its influencing factors. The analysis results show: 1. More and more investors are optimistic about the asset stripping, asset divestiture announcement to increase shareholder wealth. But in the process of assets transaction there may exist the phenomenon of information disclosure and insider trading in advance. In addition, different stripping assets under the market performance is different. Under the way of equity stripping assets announcement effect is better than the physical assets way. 2. The greater the proportion of the first big shareholder holds, the impact of asset divestiture market performance is small. A listed company on ownership concentration is higher, the big shareholders often use information asymmetry infringe upon the interests of small shareholders, and the strategic decisions such as enterprise assets are greatly influenced by the large shareholders, lead to divest decision may not be voluntary. According to the theory of corporate governance, ownership concentration lower enterprise strategic decision is based on the principle of the enterprise value maximization, thus when ownership concentration is low enterprise assets announcement, the market will give positive response.