Path And Economic Consequences Of Equity Carve-outs And Listing

Equity carve-outs and listing is a way of contractile capital operations.As early as in the 90 s,equity carve-outs and listing was developing and maturing in developed countries,but in China started late,until December 2019,China Securities Regulatory Commission formally promulgated in partitioned offering new rules,points out that the listed companies in the business and scale under the condition of certain conditions,can be split subsidiary to the Sci-Tech innov Ation boa Rd(SSE STAR MARKET)listing,and more and more enterprises begin to seek to create value for enterprises through the use of equity carve-outs and listing,this paper will discuss the path and economic consequences of it.In this paper,Liaoning Chengda Co.,Ltd.is selected as the research object.Liaoning Chengda has tried to spin-off Liaoning Chengda Biotechnology for many times,and chose to spin-off Liaoning Chengda Biotechnology to Chinext for the first time,but failed.Choose to be listed on the NEEQ;When it hit the new Third Board +H shares,it coincided with the equity carve-outs and listing of the new policy to open the SSE STAR MARKET,Liaoning Chengda took an active part in and made progress.Finally,Liaoning Chengda Biotechnology was successfully listed on the SSE STAR MARKET.This paper studies the process,path selection and economic consequences of the equity carve-outs and listing of Liaoning Chengda Biotechnology.Firstly,this paper sorted out the literature on equity carve-outs and listing,and found that most of the existing literature is empirical,mainly through large sample data to test whether equity carve-outs and listing is conducive to the improvement of corporate performance.In addition to path selection,most of the existing literature focuses on the motivation and short-term economic consequences of equity carve-outs and listing,and few studies explore the path of economic effects of equity carve-outs and listing on enterprises from a dynamic perspective.In addition,more studies do not discuss the arrangement of different stock split and applicable conditions,and the existing literature does not consider the factors affecting the choice of a equity carve-outs and listing site.Therefore,based on the theory of information asymmetry,financing theory,business centralization theory and other relevant theories,this paper sorted out the background changes and practical cases of equity carve-outs and listing system on the basis of literature review,and explored the path selection faced by Liaoning Chengda Biological equity carve-outs and listing and the specific factors affecting its selection.From the path selection of Liaoning Chengda Biological based on market competition at home and abroad,different plate to equity carve-outs and listing,external factors,such as the change of the domestic split policy and business strategy,internal financing needs,such as internal factors,comprehensive consider to choose to spin off to NEEQ,a high-tech enterprise which based on conjunction SSE STAR MARKET positioning,policy is good,high valuations in SSE STAR MARKET listing.Further,this paper investigates the impact of equity carve-outs and listing on subjects from three aspects: financing mechanism,investment effect and business performance,and comprehensively evaluates the economic consequences brought by equity carve-outs and listing of subsidiaries.It is concluded that the equity carve-outs and listing is beneficial to reduce the capital pressure of the subsidiary,reduce the information asymmetry,and improve the market value of the company.Enhance innovation and R&D strength,optimize investment efficiency;It can improve profitability in the short term,and the longterm effect of the improvement also needs the enterprise to optimize the asset restructuring,to ensure the lasting benefits of equity carve-outs and listing.Finally put forward the enlightenment.To some extent,this paper complements the related research on equity carve-outs and listing,and also provides reference for related enterprises.