Research On The Motivation And Performance Of The Spin-off And Listing Of Shengyi Technology

With the continuous development and expansion of the market economy,the uneven resources of enterprises and the frequent emergence of risk enhancement,many scholars began to actively seek solutions,and the theory of spin-off and listing was put forward at this time,and this theory received a wide range of attention once proposed.The theory of spin-off and listing has effectively solved the negative effect of diversification synergy caused by blind mergers and acquisitions of many enterprises.With the advancement of time,in 2019,the Chinese government issued relevant policies for listing on A-shares after the spin-off of enterprises.Many enterprises actively responded to the government’s call,and on February 25,2021,Shengyi Electronics was successfully listed on the Science and Technology Innovation Board,becoming the first enterprise in China to complete the "A to A".Based on the research background and research significance,this paper elaborates on the research status of spin-off and listing at home and abroad,based on information asymmetry theory,financing demand theory,core strategy theory,management incentive theory,combined with the internal and external environment of Shengyi Technology,the process and motivation of Shengyi Technology’s spin-off and listing are summarized.The financial data from 2017 to 2021 were selected,and the AHP-entropy method and the economic value-added method were used to evaluate the financial performance of the enterprise,and the evaluation results were analyzed.With the help of event research method,the short-term market performance of Shengyi Technology was evaluated and analyzed.Use the non-financial indicators of Shengyi Technology to judge the impact on the development of the enterprise after the spin-off.By analyzing the financial performance and non-financial performance of Shengyi Technology spinning off Shengyi Electronics,it can be found that Shengyi Technology has solved most of the problems existing in the parent company before the spin-off and listing,and realized the original intention of the enterprise to spin off and list.Based on this case,this paper can draw the following enlightenments: firstly,spin-off and listing,as an important strategy for enterprise development,can increase the market value of the parent company in the short term within a certain limit;Secondly,spin-off and listing can broaden the existing financing channels of enterprises and alleviate the financial pressure of enterprises;Spinning and listing again can enhance the profitability of enterprises,improve the information quality of enterprises,and help enterprises obtain reasonable valuations;Finally,after the spin-off and listing,the parent and subsidiary companies focus on their respective core technologies,which will help enterprises improve their R&D capabilities,so as to seize development opportunities,enhance industry status,and promote long-term development.In order to help other enterprises better carry out spin-off and listing,this article puts forward several suggestions from three aspects: listed enterprises,capital markets and regulatory authorities: First,after spin-off and listing,we should pay attention to the operation and development of parent and subsidiary companies.Second,enterprises should make reasonable use of the funds raised to improve their performance.Third,enterprises should adapt to the needs of future development when spinning off and listing.Fourth,increase the attractiveness of spin-off listed companies and keep more companies in China.Fifth,improve various spin-off and listing systems to improve the quality and efficiency of review.Hopefully,these suggestions will be of some help to companies that want to spin off and go public.