Study On The Effect Of Spin-off On Company Performance

With the rise of the wave of acquisition and merger in the United States in the 1960 s,many companies expanded their scale rapidly to realize diversified operation.However,contrary to their wishes,these companies,which were keen on diversification at that time,failed to enjoy the synergy brought by M & A in the post operation management,and encountered many difficulties in the actual operation process.More and more people have noticed that scale effect may also bring the complexity of personnel and institutions,increase the burden of the company,and reduce the efficiency of the company’s operation and management.As a revision of the M & a wave in the 1960 s,spin off listing began to be popular in the United States in the 1990 s.So far,the use of spin off listing in the European and American markets has been quite mature,and it is also active in the Hong Kong stock market.In fact,there are many successful spin off cases of Chinese Listed Companies in the overseas market.Only because the capital market system of our country is not perfect,the main board market in China has been strictly restricting the split listing.However,the opening of gem in 2009 opened up a new channel for domestic listed companies to spin off.In April 2010,China Securities Regulatory Commission put forward six conditions for domestic listed companies to spin off their subsidiaries and go to gem for listing,which provides the institutional basis for A-share listed companies to spin off their subsidiaries and go to gem for listing.The opening of science and technology innovation board in July 2019 provides a new platform for enterprises to spin off and go public.In August of the same year,CSRC solicited opinions on the Listing Rules of the spin off.In November of the same year,the chairman of the CSRC,Yi Huiman,conveyed to the market that "it is necessary to promulgate the Listing Rules for the spin off of listed companies as soon as possible".At present,many enterprises are eager to try.Based on this economic background,this paper takes the successful completion of the spin off listing in Hong Kong stock market in January 2018 as an example to study the impact of the spin off listing on corporate performance.