Research On The Performance Of Yuewen Group’s Spin Off Listing

In recent years,with the rapid development of China’s economy,many enterprises adopt cross industry M & a strategy in order to disperse business risks.Although this kind of M & a strategy can help enterprises to expand their business scale and realize diversified operation in a short period of time,M & A and reorganization also bring some disadvantages to enterprises,such as capital shortage,low management efficiency and so on.In order to weaken the disadvantages brought by M & A and reorganization,some enterprises in China began to try the opposite way of asset reorganization--spin off and listing.After the spin off and listing,the subsidiaries have raised sufficient funds,which can be used to increase R & D investment and improve the core competitiveness of the subsidiaries.At the same time,the subsidiaries have more business autonomy and can make timely strategic adjustments in the complex market economy environment.In foreign countries,this kind of contractive asset restructuring method has been used mature,and foreign scholars’ research on spin off listing is also more common.However,in China,due to the strict supervision and high threshold set by the CSRC on the listing behavior of spin off,the cases of spin off listing are still rare,and the research in this field by Chinese scholars is very few.With the establishment of science and technology innovation board in 2019,China Securities Regulatory Commission issued several provisions on pilot domestic listing of listed companies’ spin off subsidiaries to encourage domestic listed companies to spin off subsidiaries to go public on science and technology innovation board and further reduce the threshold of spin off listing,which has attracted the attention of many listed companies.As one of the few successful spin off cases in recent years,Tencent holdings spin off Yuewen group’s listing in Hong Kong provides a reference for domestic spin off listing.The main problem of this paper is: what kind of impact can the split listing behavior bring to the performance of enterprises? This paper adopts the methods of literature review,normative research and case study.Firstly,it briefly expounds the research background and significance of this paper,combs the research results of relevant scholars at home and abroad,and summarizes the related concepts,models,theoretical basis and performance analysis methods of spin off listing.Then,it introduces the case of Tencent holding’s spin off of Yuewen group,introduces the background of online literature industry and the development of Yuewen group,and analyzes the motivation and compliance of the spin off of Yuewen group.Finally,the paper uses comparative analysis to analyze the changes of market performance,financial performance and other performance before and after the separation of Yuewen group.The analysis of market performance mainly includes stock price change,corecompetitiveness and operation.The analysis of financial performance is mainly from four aspects: solvency,profitability,operation ability and growth ability.The analysis of other performance mainly includes three stakeholders: management,platform writer and parent company.The conclusions of this paper are as follows: firstly,the spin off listing can broaden the financing channels of subsidiaries and meet their operational and investment needs.Secondly,spin off can improve the core competitiveness of subsidiaries and increase market share.Thirdly,the split listing can protect the legitimate rights and interests of stakeholders.Fourthly,the split listing has a positive impact on the short-term stock price of the company.But at present,China’s domestic spin off listing is still in the exploratory stage.Spin off listing may transfer profits,evade debts and damage the interests of investors.In order to avoid the above phenomenon,this paper puts forward the following suggestions: firstly,the CSRC should strictly review the qualification of the company to be spun off and listed on the market,and after the spin off listing,strengthen the supervision of the company,and put an end to the parent-child company The company carries out profit transmission through improper connected transactions.Secondly,the listed companies to be split should have the right motivation to split and list,and disclose the important decisions of the company in time after the split to protect the interests of small and medium-sized investors.