Research On The Value Creation Of Bank Of China Aviation Leasing Company's Listing Separation

Due to the increasingly fierce competition among Banks and the rapid expansion of their business,the decline of the overall performance of the industry,the large consumption of capital by the development of the intermediate business of Banks,and the urgent capital demand of their subsidiaries,the banking group has met the bottleneck of development.As an important means of shrinking assets reorganization,spin-off and listing,which can reduce the negative impact of diversification discount,has attracted unprecedented attention.The listing of bank of China aviation leasing company in Hong Kong is a first in the banking sector.Through the analysis of this case,it reveals the ways and effects of realizing value increment through spin-off and listing,and explains the reasons why the sum of the value of the parent and subsidiary companies after spin-off is greater than the total value before spin-off,so as to enlighten similar companies.Paper combines the spin-off listed company value creation and so on related theory,USES event study method to analyze the market effect of bank of China,splitting,comparative analysis method analyzes the boc aviation company financial performance,due to the subsidiary accounts for small percentage of the parent company financial index change is not obvious,also with the analysis of principal component analysis,the bank of China financial performance before and after the break-up,and calculate the changes in bank of China and boc aviation company EVA,comprehensive conclusion spin-off listed in the short term and long term to achieve the company value creation.Through the analysis of the value creation process of the spin-off and listing,this paper concludes that for the subsidiary companies,boc aviation leasing company has obtained development funds,improved management efficiency and profitability through financing effect,governance effect and operation effect,which is conducive to the realization of strategic objectives and thus to the improvement of corporate value.The most obvious impact of the spin-off on the parent company is that it has reduced the investment and financing burden on boc,streamlined the parent company's management structure and focused its efforts on specialized operations.The spin-off also improved the undervaluation of Chinese Banks,gaining a premium to market value and investment returns.Therefore,the following enlightenment is obtained: the spin-off and listing can help diversified group companies re-optimize resource allocation,improve corporate governance efficiency and alleviate financing constraints by means of contraction-oriented asset restructuring.The spin-off is more conducive to the realization of overall value increment of parent and subsidiary companies.On the one hand,this case study can enable the group company and investors to have a more comprehensive understanding of the value creation of spin-off listing.On the other hand,as the first successful company in the banking industry,it has summarized the experience in the timing,object and listing location of its spin-off to obtain better spin-off effect,which is convenient for similar companies to learn from,make the decision in line with the actual development situation of the company,achieve better business performance and maximize the value of the company.This paper starts from the motivation,analyzes how to improve the company's value through financing effect,governance effect,operation effect,market effect and other ways,and quantifies the effect of value creation from all dimensions with traditional financial indicators and empirical methods.In the following part,the way of value creation will be more closely related to the effect,and further research on value creation from spin-off and listing will be carried out.