An Analysis Of The Financial Effect Of Split Listing

In the tide of corporate diversification, to mergers and acquisitions as a primary meansof business once massive expansion to become one of the main ways to improve businessperformance. However, with the development of corporate mergers and expansion,diversification series of negative effects caused by inefficient management, especially underdiverse sparked heated debate, people try to find a reasonable boundaries and therefore thescale of business, and began to shrink the size of existing enterprises, Spin-off as animportant means of capital contraction has been unprecedented attention. Development ofChina’s listed spin-off started late in2010and Hong Kong stocks confined to overseas spinspin, and regulatory authorities in2010allowed a company listed on the GEM spin-offsubsidiaries to provide new opportunities for its development, the GEM Spin-off businessesand markets to become a hit, which caused the spin-off effects of the problem is worthconsidering.This paper summarizes finishing the definition of literature as well as the spin-off of thespin-off concept, summed up the spin-off of assumptions, and on the basis of analysis of thepositive and negative spin-off of the financial effects, combined with our entrepreneurial Spinplate characteristics, conditions and the status quo, to Conba split Jolly Pharmaceutical, forexample, wish to take this opportunity to discuss specific financial spin-off effect of the GEM,can bring some inspiration for other companies. In the spin-off of Jolly PharmaceuticalCONBA case analysis is partly based on event study method and financial analysis, analyzesof Conba and Jolly Pharmaceutical stock value, financial quality, financial capability GEMspin-off, affect other aspects of investment and financing conditions, summarizes the positivefinancial effects of the spin-off behavior Conba and brought Jolly Pharmaceutical andnegative financial effects. Finally, the analysis of the factors that hinder the present stage ofthe GEM-listed on the basis of spin-off development prospect of China’s GEM and spin-offcompanies for different situations are some suggestions.After analyzing the case of the actual situation, trying the case on the financial effects ofthe spin-off company to evaluate and comprehensive consideration of positive and negativespin-off effects on the enterprise market, the company hopes to adjust the case or develop anew strategic plan for the development of plans provide the basis and can bring other listed companies Spin this "double-edged sword," some new ideas.