A Study On The Impact Of A Subsidiary Listing On The Performance Of A Parent Company By Means Of A Special Purpose Acquisition

With the progress of science and technology,the rise of new energy vehicles and autonomous driving has gradually changed people’s lives.As a giant in the traditional automotive industry,it is particularly important for various brands to accelerate the research and development of key technologies and seize the international new energy vehicle market through capital empowerment during a critical period of seizing the international market.Many companies,due to the different business characteristics and management methods of their subsidiaries,have not formed synergies in their operations.In addition,due to the high demand for funds from their subsidiaries,many companies have chosen to spin off their subsidiaries for listing to ensure their sustainable operations.When traditional IPO cycles are long and demanding,which are clearly not suitable for high-tech enterprise incubation,the rise of special purpose acquisition has made it a new choice for listing.With the introduction of the Special Purpose Acquisition(SPAC)model by the Hong Kong Stock Exchange and the exploration of the development of SPV listing,this article focuses on exploring the performance impact of subsidiary listing in the field of new energy vehicles on the parent company,in order to enrich relevant case studies of SPV listing,and provide relevant suggestions and references for traditional automotive industry giants planning to spin off and list new energy vehicles.This paper analyzes the case of Volvo’s Polar Star Company’s listing through special purpose acquisition.Based on the case analysis method and event study method,combined with the relevant principles of spin off listing,this paper explains the motivation and process of the subsidiary’s spin off listing.The motivation of Polar Star’s listing mainly includes the need for rapid listing,economic interest motivation and the need for the company to improve its governance system.The focus was on conducting long-term and short-term performance analysis of the parent company before and after the spin off.By analyzing the stock price changes of the parent company during the subsidiary’s listing period,it indicates that the outside world holds a conservative attitude towards this spin off listing.Through analyzing the changes in financial indicators of the parent company before and after the spin off,the financial performance of the parent company has declined this time.And based on the research conclusions,propose corresponding reasonable suggestions.