Research On The Motivation And Value Creation Effect Of Company Spin-off

With the continuous development of global economic integration,more and more enterprises choose to expand their business scope through mergers and acquisitions,obtain high-quality assets,break the industry barriers,and make enterprises grow rapidly.However,according to the theory of multiple value loss,when the business scope of an enterprise is expanded to a certain extent,the internal organizational relationship will also change,and the complex business structure and organizational management relationship will reduce the efficiency of organizational management and lead to the decline of the overall business performance of the enterprise.Therefore,split listed as a contractionary capital operation has been widely concerned.Compared with the capital developed countries,the research on spin-off listing in China started late,and there are few related cases.Until 2019,the establishment of the science and technology Innovation Board and the introduction of new regulations allowing enterprises to be spin-off listed on the science and technology innovation Board rekindled the enthusiasm of domestic enterprises to go spin-off listing.At present,most domestic and foreign scholars focus on the motivation of spin-off listing and the changes in the parent company’s operating performance before and after the spin-off,but seldom conduct in-depth analysis from the reasons behind the performance changes.Therefore,this article will management activities under the perspective of enterprise value drivers and spin off listing gains hypothesis(split agent),the combination of construct partitioned offering value creation mechanism,on this basis,combining with EVA momentum value drivers for value creation effect evaluation case,eventually to spin off listing the specific analysis of the causes of value creation,Constitute a complete chain of analysis and research.By building partitioned offering value creation mechanism framework,this paper found that splitting the listed companies mainly through financing mechanism,management mechanism and governance mechanism to realize the enterprise value creation efficiency,but due to the different business conditions,development strategy,spin-off listed in the above three aspects of enterprise value creation for the enterprise efficiency is also different.This paper selected the first successful spin-off and listing case of minimally invasive medical spin-off and listing heart-pulse Medical as the research object,and drew the following conclusions:Micro Port medical spin-off Endovascular Med Tech listed to Technology Innovation board,mainly around the strategic motivation,the financing motivation,management agent and management agent,spin off listing stepmother subsidiary short-term market reaction effect is positive,and subsidiary heart pulse medical enterprise value creation efficiency continued ascension and the parent company of minimally invasive medical only for short-term improvement.The main reasons are as follows :(1)the science and technology innovation board provides new financing channels for subsidiaries.Since they are highly matched,the subsidiaries can obtain value revaluation and generate valuation premium at the same time,so as to optimize the capital structure and continuously improve the efficiency of enterprise value creation.(2)After the spin-off and listing on the science and Technology Innovation Board,the specialized operation of subsidiaries improves the profitability of enterprises,and the reasonable allocation of resources of subsidiaries improves the utilization rate of enterprises’ assets,thus positively affecting the efficiency of enterprises’ value creation.(3)Spin-off and listing can optimize the ownership structure of subsidiaries and introduce institutional investors to help them make business decisions,thus improving the internal operation capacity of enterprises;At the same time,the continuous implementation of equity incentive can reduce the principal-agent cost of enterprises and form a positive influence on the improvement of enterprise value creation efficiency in terms of governance mechanism.By combining the value driving factors of EVA momentum with the value creation mechanism of spin-off listing,this paper summarizes the specific reasons for spin-off listing’s impact on enterprise value creation efficiency.The exploration of these influencing factors,on the one hand,will help enterprises clearly understand the value creation process of spin-off listing,so that enterprises can clarify the motivation in the process of spin-off listing,pay attention to the key points of value improvement,and finally achieve good spin-off listing effect.On the other hand,it is helpful for the regulatory authorities to carry out supervision activities better,that is,to conduct targeted supervision and regulate spin-off listing behavior to avoid damaging the rights and interests of minority shareholders.