Research On The Economic Consequences Of Listed Companies’ Spin-off

In recent years,with the development and perfection of the capital market,the way companies operate has also changed.In order to deal with the problem of negative synergy,a new shrinking asset restructuring model of spin-off and listing came into being.As a new mode of capital operation,spin-off and listing are different.For business mergers and mergers and acquisitions,it realizes the reorganization and rational allocation of assets by dividing the corporate layout and adjusting the organizational structure and business strategy,thereby increasing the company’s own market competitiveness.Spin-off and listing have developed earlier in foreign capital markets,and foreign companies have used this model more maturely.Due to the slower development of the domestic market,the current research and specific operations on spin-off and listing are slower than those in foreign countries.As the market’s demand for spin-offs and listings has become increasingly strong,the China Securities Regulatory Commission issued new regulations in 2019 to change its previous restrictions on spin-offs and listings,lowering the threshold for companies to spin-off and listing,and triggering a wave of spin-offs and listings.In this context,the case study of this article selects the research object of Tencent’s spin-off of Reading Group,combining the research of previous scholars,and adopting research methods such as literature research method,event research method and case analysis method.The aspects of response,financing effect,management effect and operating effect analyze and study the economic consequences of the spin-off and listing.Through research,it is found that the domestic companies that have successfully split and listed have achieved good market returns,and the market has responded well.Performance indicators such as earnings per share and ROE have also increased to a certain extent after the split.In the case analysis of Tencent’s spin-off reading article,it is found that the spin-off and listing has brought positive market responses to the company,and at the same time broadened the company’s financing channels,eased financing pressure,strengthened the company’s core competitiveness,and promoted the company’s long-term development.