The Research On The Value Realization Path And Financial Effect Of Equity Carve-out Of China Railway Construction Corporation Limited And CRCC High-tech Equipment

The in-depth development of global economic integration has led to the continuous expansion of business operations.In recent years,with the changes of internal and external business environment,the deepening and integration of specialized division of labor,the change from the seller’s market to the buyer’s market,the increase in the cost of production factors,a series of problems such as the surge in management costs associated with scale expansion,and the emergence of diversified discounts such as complex industrial operations and inefficient management,the equity carve-out have gradually returned to the operator’s perspective.Relevant scholars have researched to prove that the equity carve-out will help companies achieve positive short-term market effects through a large number of samples,but they pay less attention to the long-term value realization path and effects of companies.Based on the above phenomenon and background,this paper focuses on the core issue of how the equity carve-out will affect the long-term value of the company’s financing,governance,and operating results.In the research of this paper,the main contents are followed: Firstly,this paper reviews the existing relevant literatures on the topic of equity carve-out at home and abroad,and comments them.Secondly,this paper defines the concepts of equity carve-out,and elaborates the relevant theoretical basis.Then,based on the case that equity carve-out of China Railway Construction Corporation Limited and its subsidiary,CRCC High-Tech Equipment,which went public in Hong Kong,this paper introduces the relevant situation and the equity carve-out process.Later,in the main body,case analysis part of this paper,this paper combines the background of the industry and the specific situation of the company,and introduces the strategic purpose of the equity carve-out of China Railway Construction Corporation Limited and its subsidiary,CRCC High-Tech Equipment.And then,from the three aspects of financing,governance and operation,this paper analyzes the mechanism of the effect of the equity carve-out on corporate value.Finally,this paper summarize the case and making suggestions.The research conclusions of this paper are as follows: Firstly,a listed company carve-out its subsidiary and list on the capital market,which is conducive to obtaining new financing channels,optimizing the company’s capital structure,reducing its debt level,and improving its short-term and long-term solvency.Secondly,the equity carve-out will help companies improve the corporate governance structure,optimize incentives,strengthen external supervision,and better improve corporate governance.Thirdly,equity carve-out can accelerate corporate expansion strategies,adjust business structures,and improve business performance.Fourthly,in the long run,the improvement of corporate performance through equity carve-out is not a one-time effort.Enterprises need to continuously adjust relevant systems and strategies to meet the changeable market demands.The research value of this paper lies in: firstly,deeply digging the strategic purpose,specific trends and long-term value effects of the company’s equity carve-out,breaking through the limitation of short-term research on related concepts,and forming a full process and multi-angle analysis.Secondly,analyzing the deep-seated reasons for the impact of equity carve-out on the long-term value of the enterprise,and providing case references and suggestions for managers who want to improve corporate value through equity carve-out.Thirdly,investors realize that the improvement of corporate value through equity carve-out is not a one-time effort.They should be alert to companies and help to improve the capital market supervision system.