Divestment and Organizational Resilience: From the Perspective of Financial Distress

Divestment is an important strategic measure adopted by enterprises in the face of market changes, financial pressure or business environment, which can help enterprises better achieve long-term sustainable development. Taking A-share listed companies in Shanghai and Shenzhen from 2011 to 2020 as research samples, this paper examines the relationship between enterprise divestment and organizational resilience from the perspective of financial distress, and examines the moderating effect of financial distress on the relationship between them. Study found: assets and enterprise organization toughness significantly positive correlation, and financial woes will promote its positive effect. Further research finds that corporate financial flexibility plays a significant intermediary role in the impact of divestment on organizational resilience, that is, divestment promotes organizational resilience by improving corporate financial flexibility.