Research On The Motivations And Economic Consequences Of Corporate Spin-off

Under the influence of the current trend of globalization,whether from the perspective of production or consumption,enterprises in various countries are interdependent and mutually advanced.Therefore,in the process of enterprise life cycle development,mergers and acquisitions and expansion in the traditional sense are difficult to achieve the desired expected results of some enterprises.More and more enterprises are beginning to seek new models and new paths of industrial layout to avoid unreasonable enterprises Expansion and mergers and acquisitions bring about problems such as uneven distribution of resources,high corporate costs,and wrong corporate development strategies.In order to avoid the negative effects brought about by the above methods,enterprises gradually began to adjust their strategies,and spin-off and listing,as a mode of asset contraction,began to be gradually used in enterprises.This article starts from the case of Kingsoft Software’s spin-off and listing on the Science and Technology Innovation Board,a high-quality subsidiary of Kingsoft Office under the development needs.From the perspective of the company’s spin-off and listing motivations,it specifically elaborates the motivations of Kingsoft Office’s spin-off and listing.Qualitatively,it is clear whether the spin-off is based on reasonable or unfavorable motivations.The research and analysis of this article show that Jinshan Office Company is split and listed as high-quality assets of the group company based on a number of positive and reasonable motivations.From the corporate value level,the EVA values of Kingsoft and Kingsoft Office during the spin-off process both show obvious signs of increase;from the financial performance At the level,the operating efficiency of the parent company Kingsoft and its subsidiary Kingsoft Office has been significantly improved,but the impact on the operating efficiency of the parent company’s Kingsoft Software is less obvious than that of the subsidiary Kingsoft Office.On the whole,Kingsoft Office’s spin-off and listing based on a number of reasonable motives has a positive causal relationship with the benign economic consequences after the spin-off and listing,and it can further illustrate that the spin-off and listing based on reasonable motives is on the whole It can bring a positive effect to the development of parent and subsidiary companies.