Research On The Impact Of Spin Off Listing On Corporate Performance

Under the background of deepening reform of mixed ownership in state-owned enterprises,spin off and listing as a shrinking asset restructuring mode has aroused widespread concern in the society.The company can play a financing role through splitting and listing,standardize corporate governance,improve operational efficiency,enhance core competitiveness and enhance company's market value.At present,in view of the lack of sound capital market in China,the process of applying for domestic main board listing is complex and the examination and approval period is long.It is a more feasible option to spin off and list the subsidiary company or business segment in Hongkong.However,the spin-off Listing is not always successful,the spin-off Listing in China started late,the development is not mature,there are many problems we need to pay attention to in the process of spin off.Based on this,this paper hopes to further explore the impact of spin-off listing on the performance of the company by reviewing and analyzing the typical case,which has completed the spin off and listing.This article is based on the case of the first domestic A+H shares company to spin off a subsidiary to the H-shares—China Railway Construction Corporation Limited(hereinafter referred to as "CRCC")to spin off the CRCC High-tech Equipment Corporation Limited(hereinafter referred to as CRCCE)listed in the Hongkong main board as the research object,analyzing the effect of splitting and listing on the performance of China Railway Construction Corporation by combining theoretical analysis with case study.First,through the reference of a large number of domestic and foreign related documents,the theoretical basis of split listing is combed.Then,lead into the case of China Railway Construction Corporation to spin off the High-tech Equipment Corporation,introduce the industry background of the company,the basic situation of the company,the motivation of splitting and listing,the process,the problems encountered and the solutions.And using the method of event study,this paper analyzes the reaction of company's share price to spin off and analyzes the short-term market performance of company's spin off.And useing the factor analysis method to analyze the financial performance of the split listing by comparing the scores of the company's comprehensive evaluation before and after the spin off.The research results show that the spin-off listing can improve the performance of China Railway Construction Company,and then analyze the reasons for the improvement of the performance of China Railway Construction Company.Finally,from special to general,this paper put forward some corresponding inspirations and suggestions from the company level and the government level.