Research On The Performance Of The Spin-off Of Listed Companies

Nowadays,with the development of the capital market,more and more companies turn their attention to the domestic market.After the expansion of the National Equities Exchange and Quotations(the NEEQ)in 2013,Equity Carve-Outs became the focus of the NEEQ.Whether Equity Carve-Outs can really optimize allocation of resources,improve corporate performance,and promote the stock price has been hot-spot of the enterprises and the academy all the time.In this dissertation,the selected case company is Shanghai Ganglian E-Commerce Holdings Co.,Ltd,one of the steel business platforms which belongs to the "Internet+" industry.It has the characteristics of the Internet service industry and owns the property of steel commodity trading.Much can be gain today from studying Shanghai Ganglian spin-off Shanghai Gangyin E-Commerce Holdings Co.,Ltd listed on the NEEQ.This paper adopt literature review,case analysis and financial indicators analysis methods.Firstly,comb the relevant literature of Equity Carve-Outs,mainly include the motivation of it and the impact on the company's performance,discuss the existing defects and point out the directions for following research.Secondly,it explains the meaning,distinguish features,mode and theory foundation of Equity Carve-Outs;Then based on the case of Shanghai Ganglian spin-off Shanghai Gangyin listed to the NEEQ,combine the company's actual development status and industry background to analyze the motivation and the process;After that,study the impact of Equity Carve-Outs on the company's long-term and short-term performance from three dimensions of capital market,financial data and non-financial data;Finally draw conclusions from the case analysis and provide suggestions for "Internet+" industry companies which want to spin-off listing.The conclusions of this paper are as follows:Firstly,in the short term,regardless of the parent company or the subsidiary company,Equity Carve-Outs has a positive announcement effect,which improve the company's operating status and significantly improve the company's share price.But subsidiary's debt repayment pressure is still large,financing constraints are tightening,and operation ability needs to be strengthened.This paper believes that after Equity Carve-Outs,the subsidiaries are facing a broader market and are eager to establish their new oprations,without grasping the rhythm of development,the funds involved are in short supply and do not optimally configured.Secondly,In the long run,Equity Carve-Outs is only play an "emergency" role when the company's development is frustrated and restricted by the macro environment.The EVA of the parent company has been improved,but the effect is not significant and the sustainability is not strong,so this is not a once-and-for-all method.The role of Equity Carve-Outs for long-term performance is mainly based on whether the follow-up company's operations are reasonable,and whether the driving factors of Equity Carve-Outs will continue.In view of the fact that this paper is based on the,"Internet+" industry,the "pond effect" is significant,so the paper concludes with the following suggestions:For subsidiary enterprise with great potential,even if there is a temporary loss,the parent company can still spin it off listing on the NEEQ after assessing the asset quality,and it can avoid A-shares financing restrictions.But at this time,the regulatory authorities need to strengthen supervision.The most important thing is that after Equity Carve-Outs,the parent company should improve the strategic management mechanism,optimize the online trading process,and do a good job of risk management and control.Only in this way,the effect of Equity Carve-Outs on the long-term performance of the company is still worth waiting to see.