Research On The Motivation And Performance Of Xiamen Tungsten’s Spin-off Of And Listing Of Xiamen New Energy

China’s capital market has developed rapidly,and mergers and acquisitions of listed companies have become more frequent.However,as the size of corporate assets increases,excessive diversification has brought negative effects such as low management efficiency,low resource allocation efficiency,and weakened synergies.Spin-off listing,as a means of contraction asset restructuring,is an effective way to solve these problems.However,due to the undeveloped institutional development and immature capital market,the development of spin-off listing in China has been relatively slow.In December 2019,the China Securities Regulatory Commission officially issued the "Regulations on Pilot Trials for Domestic Listing of Subsidiaries of Listed Companies by Spin-off",which stipulated the standards and procedures for the domestic listing of subsidiaries of enterprise spin-offs at the legal level.As a result,more and more enterprises have chosen to spin off and list their subsidiaries separately in the capital market.For enterprises with spin-off listing plans,the experience of successful spin-off listing cases in the past is valuable.Therefore,research in the field of spin-off listing is of extraordinary importance.This paper selects the case of Xiamen Tungsten’s spin-off listing of Xiamen New Energy as the research object,and comprehensively uses methods such as case study and literature analysis to analyze the motivation and performance of its spin-off listing.Firstly,the research background and significance are introduced,and the domestic and foreign literature research on the concept,motivation,and performance of spin-off listing is summarized,outlining the theoretical basis of this paper.Secondly,the case of Xiamen Tungsten’s spin-off listing of Xiamen New Energy is introduced.In the case introduction,the basic situation of the company is explained,and then the spin-off motivation and process are elaborated in combination with policy factors,industry background,and the company’s own characteristics,to fully restore the spin-off matter.Thirdly,a combination of event study method,index analysis method,and factor analysis method is used to analyze the performance before and after the spin-off of the parent and subsidiary companies from the three dimensions of capital market,main financial indicators,and non-financial indicators.Finally,based on the above analysis,the research conclusions are drawn,and feasible suggestions are given.After analyzing and studying this article,the following conclusions are drawn:firstly,the driving force behind the spin-off IPO is to meet the long-term development strategic planning of the parent and subsidiary companies;secondly,the capital market has a positive response to the parent and subsidiary companies after the spin-off IPO;thirdly,the impact of the spin-off IPO on the financial performance of the parent and subsidiary companies is different;fourthly,the spin-off IPO improves the non-financial performance of the parent and subsidiary companies.Based on the above analysis,the following suggestions are proposed: enterprises should choose spin-off sectors based on their development strategies;enterprises should allocate resources reasonably and develop core businesses;attention should be paid to the long-term development of parent and subsidiary companies after the spin-off IPO;regulatory efforts on the spin-off IPO should be strengthened.