Research On The Performance Of Listed Companies' Spin-off Of Subsidiaries And Listing On The New Third Board

After the expansion of China's new third board market in 2015,it entered a period of rapid development,attracting great attention from listed companies.More and more listed companies have set their sights on this new channel,splitting their holding subsidiaries and listing them on the New Third Board.However,in previous academic studies,China's research objects related to spin-off and listing are relatively simple,mostly based on the analysis of individual cases.There are few systematic considerations and in-depth researches on the impact of spin-off and listing on enterprise performance.Therefore,this paper conducts a study on the performance of spin-off phenomenon of the New Third Board in this field,aiming to enrich the performance research of the asset restructuring method of spin-off listing.Through empirical research,it is found that the spin-off listing can bring positive market effects to listed companies,but the positive effect varies depending on the size and competitiveness of the spin-off subsidiaries.From the perspective of the financial performance of both parent and subsidiary companies,the effect on the performance improvement of the parent company is limited to the year of spin-off listing.The performance of the subsidiary in the first year after the spin-off listing is good,and it begins to fall again in the second year.Based on the conclusion of empirical research,through the in-depth analysis of the case of China Baoan Group,the study found that spin-off listing can bring the following positive effects on the performance of parent-subsidiary companies:(1)it is advantageous to the parent company to reduce the burden of management and finance,which in the short term to improve the solvency of the parent company(2)it is advantageous to the subsidiary in the capital market to get more money,thereby expanding its business scale and enhancing its growth ability(3)it is advantageous to the subsidiary company improve its governance mechanism and optimizing equity structure,thereby further improving the operational capabilities and profitability.However,this paper believes that the impact of the spin-off listing on the performance of the parent company and subsidiaries is limited to the short-term.If the company does not carry out the supporting strategic planning and resource integration,the role of the spin-off listing will not continue,and even affect the long-term value creation ability of the parent company and reduce the overall market value of the company.In addition,subsidiaries need to operate independently after being split out.Under the supervision of the capital market,the anti-risk ability will be impacted to some extent,which will have a negative impact on the subsequent development of subsidiaries.Based on the above analysis,this paper suggests that companies with spin-off intentions should select subsidiaries with good development prospects for spin-off listing,and pay attention to the continuous integration of resources after the spin-off.Subsidiaries also need to speed up the improvement of their own governance mechanisms after the spin-off.In this way,the spin-off can be used as an effective tool to improve performance.I hope that the conclusions of this paper can provide reference and reference for these companies.