The Motivations And Financial Consequences Of Real Estate Companies Spinning Off Properties For Listin

With the development of economy and the capital market,many enterprises began to diversify.However,due to the influence of the market environment,the disadvantages began to appear.In order to eliminate this influence,spin off listing began to be applied.In recent years,under the dual pressure of policy and market,real estate enterprises began to extend to the service industry at the back end of the value chain.At the same time,with the improvement of urbanization rate and the upgrading of residents’ consumption,the property management industry has developed rapidly.Since Yashili was successfully split and listed,more and more real estate enterprises began to implement the split and listing of the property sector,which has become an inevitable choice for real estate enterprises.The research object of this paper is Poly Real Estate,which is a holding subsidiary of Poly Real Estate.This research has important reference significance for other enterprises in the same industry.By reading the research of scholars,this paper,based on the financing demand theory,information asymmetry theory,management incentive theory and core strategy theory,first,uses the case study method to analyze the driving factors of the split listing;Secondly,through the analysis of financial indicators,enterprise value analysis based on economic value added,capital market reaction and non-financial performance analysis,this paper discusses the financial consequences of spin off listing.Through case analysis,it can be found that the split listing of Poly Property is mainly driven by external factors such as industry development,market competition,capital boom,and internal factors such as core strategy,easing financing constraints,and management incentives;Secondly,the spin off and listing have brought positive influence to Poly Property in terms of financial indicators,enterprise value and other financial performance;Finally,in terms of non-financial performance,the strategic layout,market share and corporate governance level of Poly Property.Based on the above analysis,this paper puts forward three suggestions for the spin off listing,with a view to providing reference for the same type of real estate enterprises or enterprises in other industries.