The Value Creation Way In Equity Carve-outs Of Listed Companies

With the in-depth development of global economic integration,many listed companies have diversified their business operations and diversified their business risks.However,with the ever-increasing number of business segments,traditional businesses and emerging businesses coexist,and problems such as uneven resource deployment and obstructed development of emerging services are likely to occur.In order to break through the barriers to the development of diversified companies,splitting some of the assets through capital operation and listing separately will become a choice for large-scale listed companies to achieve value-added.Existing research at home and abroad has found that listed companies can achieve short-term positive market effects and long-term value appreciation by re-listing some of their assets,but they are less concerned with the reasons for realizing value-added.Therefore,this article reveals the ways in which listed companies can create through equity carve-outs,thereby further explaining the reasons for spin-off listings to affect the value of the company.In the research process,this article mainly introduces the theory of company value creation and the theory of splitting and listing motives.It takes Tongfang's share splitting case of Fang Ted listed as the research object,and conducts a detailed analysis of the value realization process of splitting the company through case studies.Summarize the ways and effects of the value added after the spin-off of the company,thus revealing the deep-seated reasons for the change in the company's value after equity carve-outs.After analysis,this paper has the following findings:(1)The equity carve-outs of listed companies provides new financing channels for subsidiaries.Subsidiaries can use the equity financing method to supplement the sources of funds and optimize the capital structure,thereby enhancing the financing effect and realizing value.Create;(2)The equity carve-outs of listed companies can provide more targeted incentives.In conjunction with the enhancement of external oversight,management can be more motivated and pressured to improve business management and improve the company's operational efficiency to create value;(3)The equity carve-outs of listed companies can realize the professionalization of the parent-subsidiary company through the separation of assets.Through strategic planning and asset integration,it will help strengthen the core competitiveness of the subsidiary's business and thus enhance the company's value.The research value of this paper lies in:(1)Deepening the company's value-creating approach to equity carve-outs,allowing enterprises and investors to form a complete understanding of the value-creation process of equity carve-outs;(2)Helping to break the equity carve-outs of listed companies,that is,“circling money" The“misunderstanding”promoted the supervisory role to play a role in grooming the listing;(3)It was helpful to improve the general applicability of the research issue by studying the practice of splitting the practitioner's Tsinghua Tongfang's equity carve-outs case.The inspiration of this paper is:With the improvement of the capital market,the equity carve-outs as a means of resource re-allocation can improve the problem of limited financing,chaotic management,and obstructed growth of large-scale listed companies,thereby realizing the value-added of the company.Researching the value-creation approach of equity carve-outs can help enterprises to understand the deep-seated reasons for equity carve-outs to create value,thereby providing enterprises with value-added value and management suggestions for equity carve-outs,and also helps the supervisors improve the current supervision system.This will undoubtedly have important practical significance for enriching the asset restructuring methods of our listed companies and improving the function of our country's capital market.