A Study On The Motivation And Effect Of The Overall Listing

In recent years,with the rapid development of China’s economy and capital markets,the shortcomings of the spin-off of listing in the early years have gradually exposed.In order to avoid the problems brought about by the dis-aggregation of the listing from the source,the China Securities Regulatory Commission(CSRC)has been promoting the overall listing since 2010.In the mean time,a series of advantages that brought about by overall listing have been approved.Therefore,more and more companies choose to go public as a whole.On September 18,2013,Midea Group successfully integrated the listing of its subsidiary,Midea Electric,through its share swap.It laid the foundation for Midea Group in the home appliance industry and realized the transformation of Midea Group into an integrated technology group.This article has conducted in-depth research on the case of the overall listing of Midea Group.Firstly,this article forms a more comprehensive view of this topic through literature review,and then conducts theoretical analysis,process analysis,motivation analysis,and effect analysis.It explores the reasons for the overall listing of Midea Group.Qualitative and quantitative analyses find the role of the incident in mitigating financing constraints,improving corporate performance,reducing related party transactions,and enhancing the effect of equity incentives.With sufficient funds,the company can conduct R&D investment,M&A activities and equity incentive plans that meet the needs of long-term strategic development after the overall listing,demonstrating the positive effect of overall listing on the long-term development of the company.This article,through the case of Midea Group,elicits the enlightenment role of follow-up companies in the selection of listing methods,sums up the effect of overall listing on Midea Group’s management,governance,and long-term development,and also enhances the confidence and clears the developing direction.