Analysis On The Motivation And Effect Of The Spin-off And Listing Of Country Garden Services

At present,the increasingly fierce market competition makes enterprises constantly seek flexible financing and business model.Spin off listing has been gradually accepted and adopted by Chinese enterprises after it has been practiced in European and American enterprises.However,although there are many advantages,such as optimizing resources,China’s contact with the concept of spin off listing is relatively late,so spin off listing is a new thing for Chinese enterprises and Asian capital market after all,which involves a series of issues on spin off effect,which need to be studied urgently.In this context,this paper takes the event of Country Garden Services’ spin off and listing as the research object to carry out case study.This paper mainly adopts case study,normative study and event study.This paper first introduces the development of the property industry,and then expounds the specific process of the separation and listing of Country Garden Services,including the way of separation and listing,listing conditions,participants,share distribution,changes in capital and capital structure before and after the separation and listing,the specific implementation plan of the separation and listing,and changes in equity before and after the separation and listing.On this basis,combined with the relevant theories,the paper analyzes the motivation of its spin off listing;then,from the two aspects of financial indicators and non-financial indicators,it compares and analyzes a series of indicators changes before and after the spin off listing of Country Garden Services,discusses the results after the spin off listing of Country Garden Services;and from the perspective of capital market reaction,it discusses the behavior of capital market on Country Garden Services listing.Finally,the paper analyzes the overall effect and deficiency of the spin off listing,and puts forward the corresponding improvement suggestions.The analysis of this paper provides some empirical evidence support forthe spin-off listing of China’s property management industry,clarifies the practical significance of the spin-off listing,and provides reference for the follow-up planned spin-off listing enterprises and related research.