Analysis On The Motivation And Performance Of Multiple Spin Off Listing OG Kingsoft

In recent years,spin off and listing has gradually become one of the mainstream ways of asset restructuring in the international market.With the document issued by China Securities Regulatory Commission in 2019 opening the channel for domestic enterprises to spin off and list on the science and technology innovation board,many domestic enterprises have begun to prepare for spin off and listing.However,there are few successful cases of spin off and listing of domestic enterprises,and the relevant research is less,and most of them focus on the specific analysis of a spin off and listing behavior,which is lack of universality.This paper selects the special case of Kingsoft which has been listed three times,analyzes the performance and motivation of Kingsoft three times,and analyzes the impact of different means on the company’s economic consequences according to the similarities and differences.This paper uses the event analysis method to study and analyze the changes of the stock price of Kingsoft before and after the spin off and listing,an d uses the financial index method to elaborate the changes of the profitability,operation ability,debt paying ability and growth ability of Kingsoft and its subsidiaries before and after the spin off and listing.At the same time,combined with the non-financial performance such as R&D expenses and revenue structure,the paper makes a multi-dimensional analysis of the case.The main conclusions and contributions of this paper are as follows:(1)according to the short-term market reaction performance of Kingsoft and its subsidiaries during the three divestments,this paper makes a corresponding analysis on the controversy about the impact of the divestments on the parent company’s short-term market in the current academic circles,and finds that with the change of the CSRC’s policy,the market reaction after the three divestments turns from negative to positive,However,the market reaction of subsidiaries is generally good,which is in line with the market discovery theory.(2)This paper studies the changes of financial indicators of Kingsoft and its subsidiaries since the spin off,and finds that in addition to the operating capacity,the solvency and growth capacity of the parent company and its subsidiaries have obvious growth in the short term after the spin off,which is in line with the financing demand hypothesis.(3)The main reasons for Kingsoft’s spin off and listing are financing demand,enhancing the competitiveness of core products and maximizing shareholder value.