The Influence Of Spin-off Listing On The Value Of Subsidiaries

Since 2014,driven by national policies,the new third board has seen explosive expansion,which provides new channels and ideas for the spin-off and listing of domestic listed enterprises in China.Spin-off and listing is essentially a contractionary way of asset restructuring.On the one hand,after the spin-off and listing of subsidiaries,equity financing can be carried out through the capital market to expand the financing channels of subsidiaries.Secondly,enterprises can use this way of asset restructuring for equity incentive to the management to reduce agency costs;On the other hand,by separating some businesses of the parent company,the loss of value of diversified enterprises can be reduced and the core business can be realized,so as to improve the value of the parent-subsidiary company.Based on market timing hypothesis,financing strategy hypothesis,principal-agent theory and core strategy hypothesis,this paper analyzes the motivation and value creation path of SZGF to be separated into neeq.Through financial analysis and comparative analysis,this paper conducts horizontal and vertical analysis and comparison of the financing effect,operation effect and management effect of this spin-off and listing,so as to comprehensively evaluate the impact of this spin-off and listing on the share value of the subsidiary company SZGF.Concrete analysis results are as follows: first,after the spin-off listed SZGF through directional issue stock equity,on the one hand,the increase in cash flow ability is the ability to obtain cash and cash has improved,on the other hand,reduction of current liabilities to assets,such as shortterm borrowing debt structure has been optimized,SZGF after the spin-off listed financing effect is positive;Secondly,by expanding overseas business and increasing research and development efforts,SZGF's enterprise scale was rapidly expanded after the spin-off,and its profitability was also significantly improved in the short term,indicating that SZGF obtained positive business effects after the spin-off.Finally,SZGF directional issue shares when implemented employee stock ownership plan,good incentive for enterprise management and the core staff,enhance the operation ability also increased talent enterprises both viscous,at the same time,through the perfect governance structure,information disclosure system and the internal and external management system to improve the efficiency of enterprise management,SZGF also received positive management effect.In general,the spin-off and listing has improved the overall value of SZGF.Based on the study of this case,this paper proposes the following three Suggestions for enterprises with similar needs: 1.Second,according to the strategic deployment and business needs of the enterprise,a reasonable grasp of the flow of integrated funds;Iii.Appropriate businesses should be selected and separated according to their own development needs and core strategy,so as to truly reduce the loss of value and realize the improvement of company value.