Analysis Of Financial Performance And Value Creation Of Listed Companies’ Spin Off And Listing

Spin off is a unique asset restructuring method that can fully leverage the resources of listed companies and promote the development of China’s capital market.In 2010,under the influence of the China Securities Regulatory Commission’s "discouraging" and "strict and cautious" policy of spin off listing,most companies spun off their subsidiaries for overseas listing,which posed certain constraints on the development of local Chinese enterprises.Under the background that China’s economic development has entered the New Normal,the capital market has been continuously reformed,and has successively launched measures such as the Science and Technology Innovation Board,the registration system,and the Beijing Stock Exchange,gradually improving the capital market.In order to meet the needs of the development of listed companies themselves,the China Securities Regulatory Commission issued the "Regulations on Pilot Split Listing of Subsidiaries of Listed Companies for Domestic Listing" on December 13,2019,providing a basis and policy support for A-share companies to split their subsidiaries for domestic listing.At present,the implementation of the "splitting" system in China and its economic impact are worth studying.Based on the above background,this article selects the first successful case of a listed company’s spin off listing-Shengyi Technology’s spin off of Shengyi Electronics to the Science and Technology Innovation Board as a sample to analyze and study the financial performance and value creation results of a listed company after its spin off listing.This article first reviews relevant literature at home and abroad,elaborating on the definition,types,and theoretical basis of the split listing of listed companies.Secondly,this article reviews the practical process and reality of the spin off listing of listed companies in China,and provides a detailed analysis of the background,spin off process,and spin off motivation of Shengyi Technology’s spin off listing.Then,literature research,case studies,event analysis,factor analysis,and other research methods were used to analyze the economic effects of the spin off listing from multiple perspectives such as corporate financial performance and value creation,and to determine the economic impact of the spin off listing on the parent and subsidiary companies.The research results show that for Shengyi Group,by stripping out an independent enterprise,it can effectively expand the source of funds and improve the solvency of the enterprise.In terms of value creation,although there have been no changes in the shareholding structure of Shengyi Electronics after the spin off,it has improved the company’s internal management level by improving employee compensation and incentive effects.