Study On The Motivation And Economic Effect Of The Spin-off Of Shengyi Electronic

In 1993,the reform of state-owned enterprises into a shareholding system officially began,with the inventory and disposal of non-performing assets and the stripping of non-productive operating assets.In order to return to the main business and reduce their own burden,some enterprises began to carry out contraction-oriented asset restructuring,including equity severance,which is now known as spin-off listing.However,the development process of spin-off listing in China is rather tortuous,until 2015 gradually entered the mature stage.On December 13,2019,China Securities Regulatory Commission(CSRC)issued the Provisions on Pilot Domestic Listing of Listed Companies by Splitting their Subsidiaries.Under the support of the programmatic document,China’s A-share market set off A split upsurge.On February 25,2021,Shengyi Electronics,A subsidiary of Shengyi Technology,landed on the Science and Technology Innovation Board,becoming the first enterprise to "dismember A".So,what is the motivation behind companies’ choice of spin-off listing? What kind of impact will be brought to the enterprise after all? In order to explore the impact and significance of spin-off listing on enterprises’ quality and efficiency improvement and capital market’s deepening of financial supply-side structural reform,this paper selects the typical case of Spin-off Shengyi Electronic listing of Shengyi Technology and comprehensively uses literature research method,case analysis method,comparative analysis method and event study method.Based on information asymmetry theory,market value management theory and financing strategy theory,financial analysis and corporate strategy are closely combined to explore the internal and external motivations and economic consequences of corporate spin-off and listing,and at the same time,the experience and enlightenment of successful corporate spin-off are obtained.In order to enrich the case experience of Chinese enterprises in asset restructuring,but also to provide management suggestions for enterprises to realize value appreciation by using split listing,and at the same time to provide a certain basis for the system construction of split listing.In addition,due to the limited theoretical research on split listing in China,this paper tries to expand the literature research results on asset reorganization in China’s capital market.First of all,this paper combs the previous research results from the motivation and economic effect of spin-off listing,and introduces the relevant theories of spin-off listing and its specific application in the research content of this paper.Secondly,it introduces the typicality of the research object,the basic situation of the parent-subsidiary company and the process of the spin-off in detail.Thirdly,combined with the spin-off plan announced by Shengyi Technology,the external opportunity and internal motivation of the spin-off of Shengyi Electronics are deeply analyzed.Then,from the solvency,profitability,operation capacity and growth capacity to analyze the financial effect of the spin-off listing,from the operation,financing and market competition and other aspects of the strategic effect,from the stock price volatility and capital market reaction analysis value creation effect.Finally,this paper gives experience and countermeasures for this event.Through the case study of the spin-off of shengyi technology and the listing of shengyi electronics,this paper finds that :(1)the boost of financial system reform,the support of spin-off and listing related policies and the broad development prospect of PCB industry in which the subsidiary is located provide a good opportunity for the spin-off and listing of shengyi technology;The internal motivation for the spin-off is to streamline the business structure,improve market competitive advantage,improve incentives,and increase the proportion of direct financing and overall valuation.(2)Although spin-off listing cannot comprehensively improve enterprise performance in a short time,it has a good financing effect;It helps to reduce information asymmetry between enterprises and investors and promote enterprises to obtain reasonable valuation.Finally,countermeasures and inspirations are drawn :(1)the parent company should conform to the corporate strategy,rationally divest high-quality assets,scientifically plan the spin-off path of the subsidiary,and continuously integrate the business after the spin-off to improve the overall business performance;(2)The subsidiary should make full use of its capital advantage,increase production,reduce cost and increase efficiency,improve market share and profitability,and continuously release intrinsic value to improve long-term performance;(3)Similar enterprises should make scientific predictions and decisions,strictly abide by policy requirements and operate independently in compliance;(4)Financial regulatory authorities should improve the construction of the capital market and strengthen market supervision and guidance.