Research On The Motivation And Value Impact Of Enterprise Spin Off And Listing

With the deepening of diversification,many enterprises gradually show the phenomenon of reduced management coordination efficiency and bloated.Spin off and listing is an effective solution to the blind expansion of enterprises.After the spin off,the development of domestic listing of subsidiaries in China is very slow.It was not until the promulgation of the provisions on domestic spin off that the spin off and listing ushered in the "spring" of development in China.Previously,Chinese enterprises could only spin off and list in the overseas capital market or realize indirect spin off by transferring their controlling shares.At present,only a few enterprises have completed the "A split A",and the domestic split listing lacks relevant reference and systematic research.Therefore,the research on the "A split A" of Chinese enterprises will help to provide reference for the listed enterprises to be split,and further enrich the research on China’s split listing,especially the domestic split listing.Based on the relevant literature of spin off listing,this thesis analyzes the motivation,path choice and value impact of Chinese enterprises’ spin off listing in China.Firstly,it combs the relevant research of spin off listing,and summarizes the theoretical motivation,short-term and long-term value impact of spin off listing;Secondly,it combs the current situation,development process and relevant laws of China’s spin off listing,and introduces the background of parent and subsidiary companies and the process and compliance of Shengyi technology’s spin off of Shengyi electronic case;Then it analyzes the internal and external driving factors of Shengyi technology’s spin off and listing through the matrix model,and explores the path choice of spin off by comparing the spin off rules at home and abroad and analyzing the specific situation of subsidiaries;Then it analyzes the value impact of spin off on parent and subsidiary companies according to market value,economic activities and financial indicators.In terms of market value,it is judged according to the stock price performance of parent and subsidiary companies and the short-term capital market response;In terms of economic activities,EVA valuation method and Du Pont analysis method are used to study;At the same time,it also selects the four financial indicators of operation,debt repayment,profitability and development ability to make a comprehensive analysis of the parent and subsidiary companies;Finally,draw the research conclusions and relevant enlightenment.The study found that internal and external factors jointly drive enterprises to spin off and list.When choosing spin off listing,enterprises should fully consider the factors of policy environment,economic situation,industry prospect and their own development,clarify the capital demand,fully evaluate,reasonably select the path of spin off listing,comprehensively judge the advantages and disadvantages of spin off listing,and ensure the legitimacy and compliance of the process.From the results,Shengyi Technology,the parent company,benefited from this spin off and listing,which not only obtained short-term excess returns,but also improved various financial indicators.The subsidiary Shengyi Electronics performed poorly in the short term after listing.In addition to the continuous decline of the share price since the surrender day,there was a significant decline in various financial indicators.This is due to the short listing time of Shengyi Electronics,the large amount of funds raised have not been effectively utilized,and the capital investment has not been paid off.However,after the spin off and listing,the parent and subsidiary companies can focus on their own business,achieve independent development,and enhance their investment and financing ability.Therefore,the parent and subsidiary companies can get better development in the future.