The Research On Motivations And Effects For Shengyi Technology Carve-out Subsidiary Science And Technology Board Listed

Equity carve-out is an important form of asset reorganization in mature capital markets.After the equity carve-out,the company’s valuation can be improved,the subsidiary’s independent financing capabilities can be enhanced,the main business can be focused,the managers can be motivated,the information asymmetry can be weakened.Due to the short history of China’s capital market and the incomplete laws and regulations,there are very few companies that have been equity carve-out and listed.On December 122019,the CSRS issued the "Certain Provisions on Pilot Domestic Listing of Subsidiaries of Public Companies Equity carve-out".Public companies responded positively.Equity carve-out have become a hot topic for Public companies in China.This dissertation focuses on several economic motivations and short-term market effect theories related to the equity carve-out.Through the analysis of the development of Shengyi Technology,the competitive environment,financial data and the business situation of Shengyi Electronics.From the six theoretical dimensions of information asymmetry,increased financing channels,management incentives,business concentration,valuation and short-term market effects,use cases Analytical method and event research method,through the collection and sorting of a large amount of data,study the motivation and effect of the equity carve-out.The conclusion is that: the equity carve-out of Shengyi Technology is mainly to motivate the management,implement equity incentives,and activate the vitality of the company;secondly,The second is to allow subsidiaries to obtain independent financing channels to alleviate the cash flow of the company;the last is to focus on the main business,improve professional operation capabilities,and build strong competitiveness.Through the comparison of data,during the key window period of the equity carve-out,Shengyi Technology’s stock price has achieved excess returns,shareholders have realized the appreciation of wealth,and the short-term market effect has been positive.Since the implementation of the new regulations,Shengyi Technology is the first company to successfully carve-out and go public,and it will play a positive role in demonstrating other companies that plan to carve-out and go public.