Research On The Value Creation Of A-share Listed Company Domestic Direct Crave Out Listing

As a capital contraction strategy,carve-out can promote parent and subsidiary companies to further focus on their own business,improve the level of professional operation,and effectively improve the negative synergy caused by excessive expansion of enterprises.Separate listing of some businesses or assets has become one of the choices for large diversified enterprises to realize value adding.However,in the past,due to the immature capital market and strict control over the crave-out listing,there were few successful cases of crave-out listing of Listed Companies in China,and they all focused on the domestic crave out overseas,overseas crave out domestic and indirect crave out listing mode based on GEM and SME board.In December 2019,the CSRC issued several new provisions,which made the domestic crave-out listing channel fully open.At that time,many listed companies that met the requirements actively issued crave out listing plans.Based on this,this paper takes the first successful case,the carve-out of Sytech and the listing of Shengyi Electronics,as a case study,which is typical and representative.The core issue of this paper is: What are the similarities and differences between different crave out listing paths;What are the motivations of Sytech craving-out Shengyi Electronics for listing;Whether the effects corresponding to the motivation after the successful crave out and listing are achieved and through what path,reveals the deepseated reasons for the value creation of enterprises after the crave-out listing.The research idea of this paper is: Firstly,after reading the existing literature and theory,find the theoretical gap to explore and raise questions;Secondly,compare and analyze the advantages and disadvantages of each path,and summarize the advantages of direct crave-out listing of STAR market;Thirdly,combining the enterprise value evaluation model and market value management theory,analyze the mechanism of direct crave out listing on the creation of enterprise value,and then put forward the four effects;Then introduce the case background,deeply analyze the value creation ways and implementation effects,select quantitative indicators to verify the value creation of enterprise;EVA is further used to measure the value creation effect of the parent and subsidiary companies from the overall.Finally,draw a conclusion and put forward some suggestions.The results of the case study show that the crave out of Sytech and Shengyi electronics is based on the strategic planning and has chosen an opportunity with excellent external policies and its own performance.In terms of market effect,the capital market of the parent company responded positively,the market value of the subsidiary has been improved to a certain extent.The financing effect is significant.The listing of STAR market raises a large amount of funds for the subsidiary corporation,effectively optimizes the company’s capital structure,has strong short-term solvency,and brings sustained and stable R&D funds to the subsequent development of the company.In terms of governance and operation effects,crave-out simplified the management structure,saved management costs and strengthened the incentive effect of management.The professional operation ability of the parent company has been greatly improved,but the operation ability and profitability of the subsidiaries need to be strengthened.In general,the parent company’s EVA performance is very impressive.The subsidiary’s EVA value did not perform well in the first three quarters.It shows that the crave out listing is not a tool to improve the value of subsidiaries,the independent operation is the fundamental reasons to enhance the enterprise value.And put forward some suggestions based on the conclusion of this case study: Enterprises need to make the decision of crave out listing and choose the path carefully based on their own situation.All parties should take a longterm view and pay attention to the long-term development of enterprises after their crave out listing.The research value of this paper lies in:(1)Expand the research scope of domestic crave-out.In the past,due to the policy,direct domestic crave-out was not allowed,so the researches rarely touched on this field;(2)Sort out the advantages,disadvantages and applications of various paths and listed sectors,which can be used as a reference for enterprises;(3)From the perspective of value creation,based on the enterprise value evaluation model,build the mechanism of crave out listing for enterprise value creation,and explore the deep-seated reasons of why crave out listing affects enterprise value,which is conducive to forming a complete understanding of the value creation process of crave out listing.