Research On The Value Creation Of Spin-off Of Listed Companies

With the release of the “Continuing Supervision Measures for Listed Companies on the Sci-Tech innovation board(Trial)” and “Several Provisions on the Pilot of Listed Companies' Spin-off Subsidiaries to Domestic listing”,and other relevant regulations,the functions of spin-off,such as focusing on the main business and expanding financing channels,make many listed companies directly announce or indirectly express the intention of spin-off.From this point of view,the spin-off of the Sci-Tech innovation board will gradually develop into a trend,but can the spin-off and listing create value for the enterprise?Therefore,this article first uses the literature review method to sort out and summarize the relevant research of domestic and foreign scholars.Secondly,by combining the theory of motivations such as business concentration,multi-level capital market,as well as value creation theory and the latest capital market policy regulations,the core research question "Does the spin-off and listing create value for the company?" subdivided into three specific issues--the motivation of spin-off,the design of spin-off scheme and the value creation,which researched in accordance with the logical level,and finally combined with the results of the case study to explore the general reference value of the case.This study has obtained the following conclusions.First,financing needs and long-term value maximization are the main driving forces for spin-offs and listings,and the favorable macro environment has a driving role.Second,the rigorous scheme design helped the spin-off and listing.The horizontal split of the holding type helps the independent and professional operation of the parent and subsidiary companies.The choice of the Sci-Tech innovation board fits the positioning of subsidiary company and provides a convenient financing platform.The high-quality business is conducive to long-term good performance in the capital market which performed.Third,the spin-off and listing has created positive market value and corporate value.The performance of creating market value includes obtaining a significant excess abnormal return rate in the short term,a substantial increase in the Tobin's Q ratio,and a comparison of the price-earnings ratio highlighting the market's optimistic expectations for the development of parent and subsidiary companies.The way to create corporate value is the enhancement of subsidiary company's profitability and debt repayment ability,a significant improvement in the scale of financing,continuous R & D investment,EVA is always positive,and there is an upward trend.At the same time,the parent company strengths the profitability ability,and the main business continues optimize and reduce investment and financing pressure.Compared to existing domestic research,the innovation of this article firstly is thatthe research perspective is unique.In combination with the latest capital market environment,the case selection is time-effective and typical,and the in-depth analysis of the design of the spin-off listing plan is conducted to explore the spin-off boundary and the timing of listing.The second is comprehensive research methods.On the basis of using event research method and Du Pont analysis method,and further using methods such as price-earnings ratio,Tobin's Q ratio,EVA,etc.,it can comprehensively evaluate the value creation of spin-off from multiple perspectives,such as short-term and long-term,capital market and internal corporate.Based on the significance of the research in this article,one is to enrich the current domestic spin-off related research;the second is the practical level,which can provide a certain reference for companies with similar plans to spin-off listed Sci-Tech innovation board.