Performance Research On Sina Spin Off Weibo Listing

The spin-off and listing is an important way for enterprises to tighten their assets.It can not only help enterprises enhance their core competitiveness,but also optimize resource allocation.So far,spin-offs have matured in foreign regions,and corresponding policies have been issued in China.In December 2019,China Securities Regulatory Commission issued a notice on spin off listing,which lowered the legal threshold for spin off listing of listed companies,indicating that domestic spin off listing will enter a rapid development stage.As the new law has just been introduced,there are no cases that can be studied under the new law.Spin-off and listing in foreign markets are relatively common and the capital market is relatively mature,so this article chooses Sina and Weibo,which are spin-off and listing in the United States,for research.On the one hand,it aims to compare the differences between domestic and foreign theories,laws,regulations,and practices related to the spin-off,so that relevant companies can better understand and grasp the theoretical background,policies,and regulations of the domestic spin-off and listing;on the other hand,the research of this paper can provide practical reference for enterprises willing to spin off listing,especially Internet enterprises.The specific reasons for the spin-off of Weibo listing were analyzed.Through analysis,it was found that there are five main reasons for Sina's spin-off of Weibo listing.These are the increase in capital demand,the development of core industries,coping with peer competition,the enhancement of company value,and employee equity incentives.Then,for specific reasons,this article takes target management as the theoretical basis,uses financial index analysis and capital market analysis to select different indicators to evaluate the performance of the parent and subsidiary companies;finally,combining the specific reasons and performance analysis results in conclusion.There are five main aspects as follows:(1)The financing effect is significantly enhanced.The performance of the spin-off and listing on the parent company's financing efficiency is concentrated in the short term,and the subsidiary's financing efficiency is more prominent than the parent company's performance.(2)The core strategic decision is effective,whether it is short-term capital operation behavior or the company's long-term development strategy,Sina spins off its high-quality business Weibo for listing,and Weibo's high-quality potential is stimulated,and the overall benefits are slightly better than Sina.(3)The market position has been steadily improved.The spin-off and listing has made Weibo's market position steadily improved,thus driving the overall development of Sina.(4)The gap in corporate value is obvious.The spin-off of Weibo has greatly promoted the value of parent and subsidiary companies.(5)The efficiency of organizational management has been improved,and the spin-off and listing will make the equity incentive measures of subsidiaries more effective,and the parent company will also benefit from it.At the same time,this article also puts forward some suggestions,the parent company should avoid excessive spin-off during the spin-off,the subsidiary should choose the listing place reasonably when going public,and the spin-off of the parent-subsidiary should continue to pay attention to the future development of the company and improve the company's performance To maximize enterprise value.