The Motivation And Financial Performance Analysis Of DaZu Equity Carve-out

In face of the increasingly complicated market of our country,in order to develop,enterprises have not only obtained financing through the traditional way of mergers but also through listing ways.Through this way the value of group and subsidiary corporation can be full excavated.However,this way of capital operation in our country is still in the on the initial stage of the development of new things.Due to the limitations of the domestic main board market of equity carve-out,the company can only choose Hong Kong or foreign market to spin off.In 2010,CSRC issued the “Six conditions of domestic public company spin off subsidiary to GEM”.This is the symbol of equity carve-out in domestic.The past two years,with the expansion of the new OTC market,more and more companies spin-off listing on this market.With the development of the market and the completeness of policy,carve-out will become increasingly important.So,it's very necessary to discuss the motivation and financial performance analysis of equity carve-out.Through the summary of domestic and foreign literature about corporate equity carve-out,define the concept of it.And conclude the hypothesis and types of spin off.Then use the theory which related to the motivation to analyze the case.Combined with the capital market data,use event study method to analyze the fluctuations in stock prices.Through the comparison of three company base on the financial index data,we find that equity carve-out have positive impact on parent company.We also find that the two spin off subsidiary corporation have different performance.Finally,according to the analysis of the case,we offer some proposal trying to provide a reference for our public corporation spin off subsidiary corporation on the new OTC market.