Study On The Motivation And Economic Consequences Of The Spin-off Listing Of Enterprise

With the increasing development and improvement of China’s capital market,the scale of listed companies has gradually expanded and begun to realize diversified operation.However,when enterprises choose diversified operation,they will also have many problems,such as low management efficiency and unbalanced resource distribution.In order to solve the problems of excessive diversification,many companies will choose to split listed this way,will part of the business spin off independent listing can make parent company focus on the core business,give full play to their respective advantages to realize value appreciation,can also get more financing from the capital market,provide financial support for the development of the company.In recent years,driven by the establishment of the science and technology innovation board and the relevant spin-off and listing policies,China’s capital market has ushered in a spin-off boom,and the number of successful spin-off and listed enterprises has gradually increased.In this context,this paper takes the spin-off of Xiamen tungsten Industry to the science and technology innovation board as an example to study the motivation of the spin-off and listing and the economic consequences of the parent-subsidiary companies,hoping to provide reference for the enterprises that are willing to spin-off and list on the science and technology innovation board.This paper mainly adopts the literature study method and case study method to study the successful separation of Xiamen tungsten industry to the science and technology innovation board.The first chapter is the introduction,proposing the research background and content of this paper.The second chapter sorts out the domestic and foreign literature,relevant concepts and theoretical basis.Chapter three introduces the background of the spin-off listing case,including the institutional background and the specific process of the spin-off listing.Chapter The fourth chapter analyzes the motivation of the spin-off listing based on the case background,starting from three dimensions: macro,medium and micro,including not only the development of the enterprise itself,but also the policy promotion and industry opportunities.Chapters V and VI respectively study the economic consequences of the spin-off and listing from the perspective of parent-subsidiary companies,and adopt four different methods: event research method and factor analysis method.Chapter 7 summarizes relevant conclusions based on the whole case study,and puts forward suggestions from the perspectives of enterprises,investors and regulators respectively.This paper draws the following conclusions through research: First,from the perspective of strategic planning,the long-term strategic planning of the parent and subsidiary companies is one of the reasons for their successful spin-off and listing.Second,from the perspective of motivation,enhancing the professional ability,broadening the financing channels and improving the incentive mechanism are the main motivation for the listing;the spin-off listing enables the company to focus on the main business and enhance the industry status;the company can meet the financial support for the development of subsidiaries and enhance its R & D strength;and expand the number of R & D personnel through the incentive mechanism of combining technological innovation results with the performance of R & D personnel.Third,from the perspective of the capital market,after the spin-off and listing,the parent-subsidiary companies performed well,and both obtained positive excess returns,and the cumulative excess returns showed an upward trend.Fourth,from the perspective of comprehensive financial performance,the parent company performs better after the spin-off listing;the parent company scores higher factors after the spin-off listing,improve the financial indicators than before the spin-off listing,and some indicators exceed the industry average.Fifth,from the perspective of non-financial indicators,the subsidiaries perform well after the spin-off and listing;the market competitiveness and research and development strength are further enhanced.It can be predicted that the spin-off and listing can improve the long-term performance of the subsidiaries.After passing the case study,this paper makes suggestions from the following three levels.First,the enterprise level should formulate strategies suitable for its own development,and reasonably plan the future development direction after the spin-off listing;choose the subsidiary with excellent resources to perform better in the capital market;and choose the sector suitable for the subsidiary development.Second,the investors should maintain a rational investment attitude and make investment decisions after reasonably evaluating the actual situation of the invested enterprises.Third,the regulatory level should strictly supervise and optimize the work process to ensure the harmony and stability of the capital market.