A Case Study Of Kingsoft Office’s Spin-off Listing From Kingsoft

In the early years,due to the domestic capital market’s attitude towards spin-off listing was discouraged and the supervision was strict,while the overseas capital market was relatively mature and there had been successful precedents for spin-off listing,most companies would choose to conduct spinoff listing in U.S or Chinese Hong Kong stocks.In recent years,the mainland capital market has gradually improved,and policies have supported the return of capital to the A-share market.Many companies that are in need of spin-off listing have turned to the "new window" of the Science and Technology Innovation Board as a breakthrough,and spin-off listing have ushered in a new stage of vigorous development.As one of the few cases of successful spin-off listing on Science and Technology Innovation Board,Kingsoft Office’s spin-off listing from Kingsoft is typical and valuable for research.First,the relevant literature on spin-off listing is sorted out from three aspects:motivation,market performance and financial performance.Then,the relevant concepts are defined and the analysis framework of the impact path of spin-off listing on enterprise performance is constructed at the theoretical level.Secondly,the case is introduced from four aspects:the background of the parent company and the subsidiary company,the choice of return method,the design of the spin-off listing plan,and the sorting out of the steps.Thirdly,the motives of spin-off listing,the effect of spin-off listing on corporate performance and the path of influence are analyzed in detail.Through analysis,Kingsoft Office’s spin-off listing from Kingsoft is mainly based on four motivations:releasing undervalued signals to obtain market-oriented valuations,solving investment and financing constraints to ensure sufficient funds,standardizing corporate governance and motivating management,and enhancing brand awareness to capture market share.In terms of market performance,the spin-off listing temporarily bring positive market reaction to the parent company Kingsoft;the market performance of the subsidiary Kingsoft Office is better after the spinoff listing.In terms of financial performance,spin-off listing has brought significant financial performance improvement effects to both parent and subsidiary companies,especially the positive impact on the subsidiary Kingsoft Office.The impact path of spin-off listing on enterprise performance is as follows:by affecting the four aspects of enterprise operation effect,governance effect,incentive effect,investment and financing effect,it can improve the enterprise’s operating efficiency,governance efficiency,incentive efficiency,investment and financing efficiency,and then affect enterprise performance.Finally,for the enterprises that plan to spin off and go public,it extracts the enlightenment on the preparation and operation in the later stage.The innovation is that it is different from the previous studies on the case of spin-off to H-share or U.S stock market.Secondly,most of the existing case studies focus on the motivation of spin-off listing and its impact on corporate performance.On this basis,article further analyzes the impact path of spin-off listing on corporate performance,which is helpful to enrich the relevant case studies of spin-off listing in our country.