Motivation And Economic Consequences Of Overall Listing

Due to historical reasons,a large number of listed companies in China are split off a relatively good profitable asset from the group.Although the spin off listing played a promoting role in the early stages of the development of capital market,but also left many hidden dangers for the normal operation of listed companies and corporate governance.To solve the various problems caused by spin off listing,national ministries introduced all kinds of support policy,especially in 2015,the CPC Central Committee,the State Council announced the “Guiding Opinions on Deepening the reform of state-owned enterprises” and other documents,the provinces are the pace of reform in state-owned enterprises,making the mixed ownership reform of state-owned enterprises once again become the focus.Because state-owned enterprises occupy an important position in China's economic development,its development speed and development quality affect our economic development.But there are still many difficult problems in the reform of state-owned enterprises,so how to better the implementation of the reform in state-owned enterprises,and make the reform for China's economic development to bring a new round of energy is an important issue.As overall listing is a relatively new transaction on the market,the theoretical circle mainly focused on the discussion group of concrete mode and a specific company to realize overall listing of the company whether there is a further development positive effect.In contrast,there are relatively few discussions on the motivations and economic consequences of the overall listing.So,what is the motivation for listed companies to choose the overall listing? What economic consequences will the overall listing have on the listed company? The answer to both questions will not only help us to understand the motivations of listed companies to implement the overall listing and its corresponding economic consequences from the perspective of theoretical research,as well as to implement the overall listing of the group of companies,investors,market regulators all participants to understand the overall listing of the capital market to provide certain reference.This paper mainly adopts the method of normative research and case analysis to study the motivation and economic consequences of the overall listing.First of all,based on China's current overall listing definition,model and theoretical analysis,many inductive analysis was carried out on the overall listing motivation and economic consequences from the point of purchase,merger,acquisition and reorganization.On this basis,this article takes overall listing of High Hope Group as an example and makes a deep study on the motivations of listed companies from the angel of winning asset pricing and assets evaluation method,the timing and price,performance pledge,lock during the period of cash dividends in the overall listing plan design.Based on the motivation of overall listing,we use event study method and accounting method to analyze the economic consequences of overall listing on the market.Finally,we found that High Hope Group always stick to the motivation of interest coordination in the overall listing process,minority shareholders' interests are well protected.After the overall listing,market performance and accounting performance has a significant positive impact,eventually brings value increment to the enterprise.This paper will help regulators to identify the motivation from the overall listing scheme,and then formulate corresponding policies and further standardize the overall listing process,protecting the interests of minority shareholders.At the same time,the research of this paper can provide experience and reference for those companies who want to go public as a whole,making it to improve the value of the company and realize the target to become bigger and stronger.