Research On The Motivation And Economic Consequences Of The Spin-Off And Listing Of Kindly

With the development of capital market,spin-off listing has become a means of capital operation.On November 8,2019,Conde Lai,a leading enterprise in the medical puncture device industry,listed its subsidiary Conde Lai Medical Device,which is engaged in the production of implant medical devices,in Hong Kong market.Taking this case as the object of study,this paper analyzes the motivation and economic consequences of spin-off listing,hoping to provide some reference for enterprises that are willing to spin-off listing.First of all,by reading a lot of literature,this paper clarifies related concepts and theoretical basis.Secondly,the paper concludes that there are four main reasons for the demording and listing of Conde Lai,which are to optimize the industrial layout and accelerate the internationalization strategy.Expand financing channels,improve product research and development ability;Improve equity allocation,improve the enthusiasm of management;Release market signals and enhance enterprise value.Finally,this paper studies the economic consequences of the demerit listing of Conde Lai.Using the event study method to analyze whether the spin-off listing can produce short-term market effect;Based on EVA and Tobin’s Q to judge the change of enterprise value before and after the spin-off listing;The financial indicators related to debt paying ability,operation ability,profitability and development ability are compared horizontally and vertically to judge the impact of spin-off and listing on the financial effect of enterprises.Through the change of key management compensation and the implementation of equity incentive plan before and after the spin-off listing,we can judge whether the spin-off listing can improve the management effect of the company.After in-depth research,five conclusions are finally drawn: first,the number of overseas distributors increases year by year after the spin-off and listing,which further accelerates the internationalization strategy;Second,spin-off and listing can provide fund guarantee for subsequent research and development of enterprises,broaden financing channels,and improve product research and development capabilities.Third,after the spin-off and listing of enterprises through the implementation of share incentive plan,enhance the enthusiasm of the management to improve corporate performance;Fourth,the spin-off and listing of the group as a whole attracted the attention of the market and promoted the improvement of corporate value;Fifth,after the spin-off and listing,the operation capacity and profitability of the enterprise did not improve,and the funds raised by the enterprise did not bring the maximum income.