Research On The Performance Impact Of Jangho Group’s Spin-off

With the rapid development of the capital market,competition between enterprises has become increasingly fierce,leading to more and more enterprises actively seeking better resource allocation methods to expand financing channels and increase the economic value of enterprises.Some enterprises have achieved diversified operations through mergers and acquisitions and expansion to increase corporate value,but at the same time have brought many problems that need to be solved urgently.In this case,in order to make up for the adverse effects of excessive mergers and acquisitions,spin-off and listing came into being.The spin-off went public in the 1980 s and became popular in the United States and other Western countries.Compared with foreign capital markets,the development of spin-off and listing in China is still in the exploration stage.It was not until 2000 that Tongrentang spin-off Tongrentang Technology was listed on H shares,which became the first successful case of spin-off and listing in China.Chinese public vision.This article takes the successful listing of Sundart Group in the spin-off of Jangho Group as an example.First of all,based on the viewpoints of domestic and foreign scholars,the relevant concepts and theories of spin-off and listing are summarized,and the theory of information asymmetry,financing strategy theory,management incentive theory and business coreization theory are used as the theoretical basis of this article.Secondly,it introduces the overall situation of Jangho Group,Sundart Group and the construction and decoration industry,and conducts an in-depth analysis of the reasons and the spin-off process of Jangho Group’s spin-off of Sundart Group.Thirdly,this article focuses on the performance of Jangho Group’s spin-off of Sundart Group.Based on the capital market,it analyzes the impact of the short-term performance of parent and subsidiary companies from the perspectives of the trend of stock price changes and accumulated excess return;based on financial indicators,it mainly analyzes the impact of parent and subsidiary companies on the performance of parent and subsidiary companies.Long-term performance impact analysis;and non-financial indicators research,as a necessary supplement to the first two analyses,a more comprehensive study of the performance impact of this spin-off event.Finally,through the above research,the following conclusions can be drawn:(1)The reasons for the spin-off and listing have been achieved;(2)The spin-off and listing has a significant impact on the short-term performance of the parent subsidiary;(3)The spin-off and listing has a significant impact on the long-term performance of the subsidiary,but it has a significant impact on the long-term performance of the parent company.The performance impact is not obvious;(4)The spin-off and listing have a certain promotion effect on the non-financial performance of the parent and subsidiary companies.In December 2015,Jangho Group spun off Sundart Group.It was my country’s first A-share listed company in the construction and decoration industry.The successful case of splitting the subsidiary into H-share listing.The application of the spin-off and listing strategy allows the company not only to gain more The financing channels of the company also make it easier for social investors to grasp the actual situation and true value of the company,so that the company can grow steadily in the development of the capital market.Therefore,the analysis of this case has more important research significance,and it can provide reference for other companies that want to spin off and go public.