Research On The Causes And Economic Consequences Of The Equity Carve-out Of Kingsoft Office From Kingsoft In Star Market

Equity carve-outs will help enhance the efficiency of the company's resource allocation.It is of positive significance for optimizing business structure,improve financing methods and improving corporate governance structure,and is conducive to promoting the high-quality development of parent-subsidiary companies.Although equity carve-outs started late and developed slowly in China,with the continuous reform of the capital market,equity carve-outs gradually becomes the focus of the market.Moreover,the birth of the STAR Market in June 2019 prompted the capital market to promote the reform of the registration system,and also provided a new opportunity for the development of the equity carve-outs.However,because the establishment of the STAR Market is not long,the research on the STAR Market mainly focuses on the pilot registration system and system innovation,and basically does not involve the relevant topics of the equity carve-outs in STAR Market,so it is necessary to supplement the case study of the equity carve-outs of the STAR Market.Based on it,this thesis selects Kingsoft spin off of Kingsoft Office in the STAR Market as a case study,the main problems of the thesis are: what is the cause for Kingsoft spin off the listed STAR Market,what are the effect paths of the parent-subsidiary companies and how to achieve it,and what kind of reference value and reference significance can it bring to enterprises with similar needs.Firstly,this thesis summarizes and reviews the relevant research of the STAR Market and equity carve-outs based on domestic and foreign literature.Secondly,it clarify the theoretical basis of the case and the mode and conditions of the equity carve-outs.Thirdly,this thesis introduce the basic information of the parent-subsidiary company and the industry situation,and sort out the process.Finally,this thesis analyzes the short-term market reaction of the parent-subsidiary company,the performance of the financial indicators and the non-financial indicators after the spin-off,and summarizes the economic consequences of the spin-off of the STAR Market.Case study shows that Kingsoft spin-off Kingsoft Office listed the STAR Market mainly because the STAR Market meets the positioning of the company,the company can obtain low-cost and diversified financing channels through the equity carve-outs,but also improve its visibility in the international market.At the same time,it can also improve the professional management level of the parent-subsidiary company and improve the governance structure of the company.On the basis of the research on the economic consequences of the equity carve-outs and find that from the short-term market reaction,Kingsoft office has gained a positive market effect after the spin-off,but because Kingsoft stripped its high-quality subsidiaries,it showed a short-term negative impact in the market.From the perspective of financial index performance,the equity carve-outs has not brought a continuous positive impact on the capabilities of Kingsoft,but it has a positive effect on most indicators of Kingsoft office,so that its capabilities have a corresponding improvement.For the performance of non-financial indicators,the equity carve-outs has brought a certain positive impact on both the parent and subsidiary companies,but the impact in some aspects is not lasting.Through analyzing and studying this case,this thesis puts forward corresponding suggestions and experiences,hoping to provide reference significance for the spin-off and listing of similar science and technology innovation enterprises.