| Against the backdrop of China’s progressive registration system reform,the China Securities Regulatory Commission(CSRC)officially released its policy on A-share spin-off listings in December 2019.As of the end of December 2022,94 listed companies have prepared for or announced spin-off listings and received widespread positive feedback from the capital market,forming a de facto "spin-off wave".However,there is a lack of in-depth research on this wave in China.The implementation of the registration system reform and spin-off listing rules is achieved through the marketoriented reform of capital elements to strengthen direct financing channels,optimize corporate decision-making behavior,improve resource allocation efficiency,and ultimately serve the real economy.In other words,the key to improving efficiency through spin-off listings is how companies can optimize their decision-making in the new institutional environment.Therefore,this paper focuses on the decision-making process of companies considering spin-off listings,analyzes the motives of spin-off listings from the perspectives of financing and divestiture effects,and further demonstrates the efficiency improvement brought about by spin-off listing decisions by examining their explanatory power on market reactions.Using a sample of 94 listed companies in China that announced or prepared for spin-off listings from December 2019 to December 2022,this paper employs a logit model to test the effects of financing constraints and corporate diversification on spinoff listing decisions after sample matching and further tests the impact of these factors on cumulative excess returns before and after spin-off listings.The results show that the higher the financing constraints and the degree of corporate diversification of the parent company,the greater the probability of announcing a spin-off listing.High financing constraints may encourage the parent company to spin off subsidiaries with high potential and high investment for financing,while a higher degree of corporate diversification may lead to more negative synergies,encouraging companies to specialize and making the parent company more inclined to spin off.In addition,the higher the proportion of R&D investment of the listed company,the more likely it is to make spin-off decisions due to R&D pressure.Furthermore,the results show that the announcement of spin-off preparations or plans has a positive impact on the stock price of the parent company,and financing constraints and corporate diversification can effectively explain changes in cumulative excess returns during the event window period,indicating that the market understands the motives for the spin-off and gives positive feedback.The results of this paper confirm that the main motives for companies considering spin-off listings are financing and reducing negative synergies from diversification.The significant correlation between these motives and the positive market reaction confirms that the market recognizes the efficiency improvement brought about by spin-off listing decisions.Therefore,the theoretical significance of this paper is to supplement existing spin-off listing theoretical research and expand the understanding of the decisionmaking logic of A-share companies considering spin-off listings.The practical significance of this paper is to provide theoretical support and recommendations for companies and regulatory authorities.For example,listed companies can make spin-off decisions based on their own financing and corporate diversification factors to improve their use of funds and enhance core competitiveness.Regulatory authorities need to further improve spin-off listing-related regulations and policies,encourage effective spin-off listings,and promote the efficiency improvement of the capital market. |
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