Study On The Influence Of Demerger Listing Of Xiamen Tungsten Industry On Enterprise Value

Since the beginning of the Industrial Revolution,enterprises have become an essential part of society.With the development of society and economy,some developed countries’ enterprises have started to annex other weak and small enterprises in order to obtain excess profits.One by one,smaller enterprises have been acquired by large groups and become part of their business landscape.This phenomenon reached its peak in the mid-20 th century,leading to the emergence of many large and diversified multinational groups in the world.However,as the economic growth rate of developed Western countries slows down,the drawbacks brought by this approach are becoming increasingly apparent,and these groups are beginning to explore new development paths.In the 1980 s,spin off listings emerged in the United States,and this emerging capital operation method can alleviate the drawbacks of mergers without losing control over subsidiaries,so it quickly gained the favor of those large groups.Compared to Western countries,China’s spin off listing started later.In 2000,Tongrentang successfully spun off Tongrentang Technology for listing in Hong Kong,and the spin off listing gradually began in China.However,due to the imperfections of China’s capital market and strict government supervision,the development of China’s spin off listing was slow again.Until December2019,the China Securities Regulatory Commission released the "Several Provisions on the Pilot Domestic Listing of Subsidiaries under the Spin off of Listed Companies",which relaxed the entry threshold for domestic spin off listings and provided guidance documents for China’s spin off listings.In 2023,China began to deepen the comprehensive registration system reform,which provided a good platform for future spin off listings.This article selects the case of Xiamen Tungsten Industry’s spin off and listing of Xiamen Tungsten New Energy as the research object.This case not only studies the impact of the spin off and listing on corporate value,but also provides some experience for state-owned enterprise reform.This paper divides the value of the parent company into market value and intrinsic value,and uses the event study method to analyze the changes in the market value of the enterprise before and after the spin off listing.The intrinsic value of an enterprise is divided into operating capacity,investment capacity and financing capacity.Twelve financial indicators are selected to represent the three capabilities respectively.The CRITIC weight method is used to calculate the weight of each financial data in the intrinsic value of the enterprise,and then the gray correlation analysis method is used to calculate the correlation between these financial data and the intrinsic value of the enterprise.Finally,the financial indicators through which the spin off affects the intrinsic value of the enterprise are obtained.This paper studies the process of Xiamen Tungsten New Energy’s spin off listing,and finds that spin off listing can improve the market value of enterprises in the short term,but its time will be earlier than the actual date of the event,and its stock price performance is not optimistic in the long run.The biggest impact of spin off listing on the intrinsic value of enterprises is the ability to operate,followed by the ability to raise funds,and finally the ability to invest.Therefore,speculative behavior aimed at obtaining shortterm returns through a split listing may entail significant risks.For enterprises that want to spin off and go public,spin off and listing is just a way and cannot fundamentally change the intrinsic value of enterprises.The development of subsidiaries is the fundamental factor affecting the intrinsic value of parent companies.