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

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. Introduction In recent years, divestiture is considered to be an important strategic decision for the company to seek long-term development(Tan, 2014; Foss, 2002).However, the difference of the divestment ability of different companies affects the divestiture decision, and then the company makes strategic adjustment and change in the right time, which affects its performance (Nguyen, Rahman, Zhao, 2013). Divestment capability is a certain capacity formed through the accumulation of managers’ experience to reduce the loss of decision-making errors, effectively to control costs and enhance value (Bergh & Lim, 2008; Wang, 2017). Most extant studies of the effect of divestment on performance suggest that there is a correlation between the two factors, but few have explored its relevance based on the perspective of divestment ability. Therefore, based on the perspective of ability, this paper systematically explores the effect of divestment ability on performance and carries out empirical test, which helps to improve the divestment ability of enterprises and improve performance.