Path And Performance Analysis Of Enterprises’ Spin-off Listing

As the market competition becomes increasingly fierce and the negative effects of diversification become more obvious,many Chinese companies start focus on spin off listing,a kind of contractionary asset management.At the same time,the development and improvement of China’s multi-level capital market and the promotion of the pilot system,create market environment for the practice of spin-off listing.The Promulgation of Rules on Spin-off of Listed Companies,which issued in January 2022 and in order to clarify the relevant conditions and carry out the division of responsibilities,marks our country’s spin-off listing market has entered the standardized development stage.Most companies choose to spin off their premium subsidiaries and only think listing is a means of raising capital.As for how to carry out strategic transformation with spin-off listing,this theory needs to be supplemented.This article first reviewed the history of spin-off listing in our country,and introduce the results about spin-off listing from three aspects,motivation,path and performance evaluation.Then we conclude different kind of results and distinguish similar concepts.Prepared for the following analysis.After that,this article introduced the background and history of the split listing of Shanshan Shares.Based on the analysis of the enterprise’s operating difficulties,we summarize the motivation of the spin-off listing.Then we sorted out the restructuring process of subsidiaries based on the corporate’s strategy.Finally,we discuss the compliance of spin-off listing from the legal perspective.Through these analyses,we know how Shanshan’s two poorly run subsidiaries gain recognition from investors.As for effect evaluation,this paper uses event analysis to calculate AR and CAR to evaluate short-term market feedback,and analyzed financial indicators to evaluate long-term impact.Through the analysis,it is found that the spin-off listing makes the parent company get rid of the influence of the inferior business,and makes the operating performance of the two subsidiaries improve to varying degrees.Finally,according to the analysis results,this paper puts forward several suggestions on business selection and path selection for enterprises to carry out spin-off listing.In the process of spin-off listing,the enterprises managers should pay more attention to the restructuring of the planned spin-off business,and the choice of spin-off path should match the motivation of spin-off.