Research On The Effect Of Spin-off Of Listed Companies

In December 2019,CSRC issued “Several Regulations on the Pilot Program of the Spin-off of Subsidiaries of Listed Companies for Domestic Listing”,which is the first normative document on the spin-off for domestic main board.With the implementation and refinement of relevant policies,the enthusiasm for spin-off is high,more and more enterprises realize the rational allocation of resources through spin-off.As of February2022,163 companies have issued spin-off plans.If you choose to spin-off subsidiaries for listing,you can obtain financing,supply R&D funds,realize business focus and enhance corporate strength.However,compared with mature overseas market,the domestic spin-off is still in its infancy.How the market,financial and non-financial effects after spin-off?This article sorts out the research status at domestic and foreign from three perspectives: The connotation,the motivation and effect of spin-off.Reviews the development process of spin-off in China,compares the provisions of spin-off in domestic and HK stock market,and discusses the impact mechanism of spin-off on corporate value in combination with financing theory,core strategy and other theories,lays the foundation for empirical and case studies.The Event Study and Factor Analysis Method are used to evaluate the overall market and financial effects of 45 listed companies after spin-off their subsidiaries;Then,select the first domestic company spin-off its subsidiary on the Growth Enterprise Market(CONBA spin-off Jolly Pharmaceutical)to test empirical results,based on its background and process,by using the Event Study,Financial Index Method and combined with the “Entropy Weight-TOPSIS-Grey Correlation” model to analyze the impact of spin-off on the operation effect of parent and subsidiary companies.The study found that: Spin-off listing has created short-term positive wealth for listed companies.The stock price and financial performance of most companies increased significantly in the short term.But when the heat passed,they showed a downward trend,indicating that the market is gradually becoming more rational,IPO dividends fade away.Finally,in order to improve the success rate and optimize the effect of spin-off,some suggestions are put forward for listed companies and government departments: Companies should pay more attention to their main business,adjust strategies timely and optimize internal governance structure,so as to improve value of enterprise;Government should properly adjust regulatory policies,standardize the market environment,combine with actual situation,scientifically support and correctly guide the spin-off behavior.