Study On The Value Creation Of "A To A" Of Listed Companies

In European and American capital markets,spin-offs are usually used by large companies to achieve investment decisions,business strategies and value growth,and are a mature means of capital operation.In 2019,China formally established the Science and Technology Innovation Board and pilot registration system,and then the Securities Regulatory Commission issued the "Certain Provisions on Pilot Domestic Listing of Subsidiaries of Listed Companies"(hereinafter referred to as "Certain Provisions"),which liberalized the constraints of domestic spin-offs and thus kicked off the A-share The registration system has effectively reduced the number of companies listed on the stock exchange.The registration system has effectively lowered the threshold for listing,the establishment of the Science and Technology Innovation Board has enriched the choice of listing paths,and the issuance of the "Certain Provisions" has opened up the channels for domestic spin-offs,which together provide new opportunities for enterprises to quickly spinoff to domestic major boards for listing and financing.Against this background,this paper selects XTC New Energy Materials,one of the first domestic companies to be listed in the A to A process,and compares the Chinese and foreign literature related to the motivation and value creation of the spin-off,using financing strategy theory,information asymmetry theory,principal-agent theory,business concentration theory,and market value management theory as the theoretical basis of this paper.This paper analyzes the motives,paths and value creation of XTC New Energy Materials’ spin-off,reveals the value creation mechanism of the spin-off,summarizes its experience and insights,and provides useful references for other companies to be spun-off.According to the findings of this paper,the motivation for the spin-off of XTC New Energy Materials is mainly the strategic transformation of XTC New Energy Materials as a technology innovation enterprise in response to industry competition and the further deepening of reform as a state-owned enterprise.In terms of value creation,the spin-off creates benefits by influencing the financing,operation and governance of XTC New Energy Materials,specifically: firstly,in terms of financing effect,the spin-off reduces information asymmetry and establishes new financing channels;secondly,in terms of operation effect,the spin-off can improve the organizational structure,focus on core business,improve professional operation and promote strategic transformation;thirdly,in terms of governance effect,the spin-off can improve the organizational structure,focus on core business,improve professional operation and promote strategic transformation.Third,in terms of governance effect,the spin-off strengthens external governance,improves the effect of equity incentive and optimizes internal governance structure.Ultimately,the spin-off brings value enhancement to XTC New Energy Materials.The findings obtained from this paper are: first,spin-offs can bring positive value creation effects to domestic firms in China.Second,spin-offs enhance the short-term earnings,long-term value and innovation performance of firms by influencing their financing,operation and governance effects,thus achieving value creation.Based on the results of the above analysis,this paper provides a reference path for domestic firms’ spin-off decisions and how to achieve value creation,and offers reference suggestions for regulators to further improve the spinoff system under the multi-level capital market system.