Study On The Motive Of Splitting The Listing And Its Value Effect On The Parent Company

The development of spin-off listing in China has been turbulent,and it is still difficult to develop in China's A-share market.With the increasing difficulty of IPO review,more companies are seeking listings in Hong Kong or overseas.However,under such a difficult situation,there are still many companies actively conducting spin-offs.This is precisely because the spin-off listing can bring some considerable benefits to the parent company.For example,it can increase the market value of the parent company,sell excess shares through the exit channels,and obtain excess returns;pay more attention to the core business and diversify business risks.This article attempts to analyze the splitting of the parent company.Analyze the value effect that the parent company wants to obtain.After summarizing the theoretical basis and the literature review,it uses eight listed companies that have been demolished as samples to analyze the three motives for delisting.Then,through the splitting of Tongfang's shares with Tongfang Ted,the specific case of the parent company was analyzed to determine which of the aforementioned incentives the parent company's splitting behavior met,as well as the specific impact on the parent company,and this was explained accordingly.Finally,they came to some conclusions: 1.The spin-off listing has expanded the financing channels to obtain the secondary premium;strengthened information disclosure to restore the company's undervalued value;concentrated the main business and extended the market space.2.The influence of the parent company is uncertain,and the motive for the spin-off listing must be determined based on the specific development of the subsidiary company.3.The blind spin-off will lead the company to commit suicide.This article is from the perspective of the parent company,to study its splitting motives and the impact created after the spin-off,but because China's spin-off listing case is not enough,there are not much data that can be used,it is difficult to conduct empirical research,so the results of the analysis don't have that much persuasion.Afterwards,with the development of the market,there will be more cases in which listed companies spin off sub companies into the GEM or the Main Board.At that time,it is necessary to conduct comprehensive research using empirical analysis.At the same time,future research can also classify the company's industry,then conduct a comparative study.