Research On The Performance Of Equity Carve-out Of TBEA

With the rapid economic growth of China,the system of capital market is more standard than before gradually.Thereby,the equity carve-out become one of ways to manage the assets of enterprises.Besides,the equity carve-out canplay an important role in establishing the new development ideas for multi-industry enterprises.Due to the constantly development of diversification strategy,and the various businesses of the enterprises were distributed in different industries,with different development characteristics and management methods,obstacles have been raised about the explored of business balance for the enterprise.Thereby,there were more and more subsidiaries were span off to overseas for listing by their parent companies to promote business specialization and relieve financing pressure.Furthermore,it has been conclusively shown that excess capacity,insufficient demand,prominent risk and great transformation pressure were several reasons behind the electrical machinery manufacturing industry of China,which brings an army of pressure to the advancement of enterprises.Under the guidance of national policies,new energy industry has been developed by quite a few enterprises from electrical machinery manufacturing,thereby resulting in the form of pattern named double main business.Nevertheless,the equity carve-out was meeting the development needs of such enterprises.Under the background of such context,it is worth further study in the academic circles to find out why,how and whether the equity carve-out can bring "1+1>2"effect to the corporate performance.Based on above,the affair that XINTE was span off to Hong Kong for listing by TBEA was taken as the research case in this article.In the first place,the domestic and foreign literature were summarized.And this part expounded the concept and related theories of equity carve-out,which can lay a theoretical foundation for this paper.In addition,based on the current situation of equity carve-out of China,the development background of TBEA and its subsidiary XINTE was illustrated clearly.At the same time,the motivation,compliance and process of equity carve-out of TBEA were discussed in-depth.Next,the event study method,factor analysis method and non-financial indicator analysis method were applied to study the performance of equity carve-out of TBEA comprehensively in this paper.And these research contents were surplus revenue of stock price of TBEA during the announcement period of equity carve-out,changes in financial performance of TBEA after the affair of equity carve-out and performance of non-financial indicators of TBEA after the business of equity carve-out.Finally,the main conclusions are as follows:(1)The equity carve-out was a long-term strategic based on the needs of enterprises;(2)The equity carve-out brought an excess return to stock of TBEA;(3)The financial performance of TBEA improved but the rising trend was not stable;(4)TBEA performed well in non-financial indicator after equity carve-out.Based on the above conclusions,a slice of suggestions for TBEA and other companies that intend to implement equity carve-out were proposed,which aim to provide quite a few references.