Research On The Value Creation Effect Of Chinese Listed Companies' Spin-off And Listing Of Subsidiaries

Asset restructuring is an important way for enterprises to allocate resources,and spin off is one of the contraction restructuring.In foreign countries,many listed companies choose spin off listing for secondary financing,while in the domestic capital market,the time of using spin off listing is later,and there are many restrictions in domestic listing,most of the domestic listed companies are spin off listing in foreign countries or Hong Kong.The promulgation of relevant regulations in 2010 and 2019 provides environment and opportunity for listed companies to spin off and list in China,as well as corresponding system basis.Obviously,China is encouraging the domestic listed companies to spin off their subsidiaries.Therefore,it is of great significance to study the value creation of spin off subsidiaries of listed companies.In this aspect,foreign scholars are rich in theory and empirical research,which provides a good reference for this paper.However,in China,due to the use of spin off listing less and later,so the research is relatively less.It can be seen from the existing research that the research conclusions about the performance of listed companies before and after the spin off are not the same.In addition,most of the existing researches on spin off listing in China tend to examine a specific listed company for case analysis,and only study the impact of spin off listing on the stock price of its parent company and on its business performance on one hand,which is less comprehensive.Therefore,this paper will collect 12 companies that have been successfully spin off and listed as a whole to study the impact of spin off and listing on value creation,the results will be more convincing.Compared with the existing related research,the research in this paper is more comprehensive and comprehensive.Specifically,this paper studies from two aspects.One is to study the abnormal changes of the stock returns of the parent company relative to the index returns of the market before and after the company announced the split listing,so as to analyze whether the split listing can create value for shareholders.The second is to study the changes of related performance indicators in the three years after the parent subsidiary's spin off listing compared with the year before the spin off listing,so as to analyze whether the spin off listing can improve the company's operating performance and create value.Through the research,we find that on the announcement date of the spin off,the equity of the parent company gains a positive abnormal rate of return,and the cumulative average abnormal rate of return is significantly positive within 20 days before and after the announcement of the spin off.In addition,combined with the changes of the operating performance of the parent company and the subsidiary company after the spin off listing for three consecutive years compared with the year before the spin off listing,this paper analyzes the impact of the spin off listing on the parent company and the subsidiary company,and finds that the operating performance of the parent company has been greatly improved after the spin off listing,while the operating performance of the subsidiary company is not satisfactory.It is concluded that spin off listing is not suitable for all enterprises.When choosing spin off listing as a new financing method,enterprises must consider their own actual situation and the development prospect of subsidiaries,so as to create positive value for shareholders.