Research On The Motivation And Performance Of Kingsoft Software Spin-off Kingsoft Office

Spin-off listing,as a means of capital operation,has gradually attracted attention after the successful spin-off of Tong Ren Tang Technology.China’s capital market has its particularity and cannot blindly copy foreign standards.The supervisory and regulatory authorities maintain a prudent attitude towards the spin-off listing until the establishment of the Sci-Tech innovation board in June 2019.The registration system pilot and the China Securities Regulatory Commission issued the policy guidance for the spin-off listing of domestic listed companies,bringing new opportunities for the spin-off listing.First of all,this paper combs and summarizes the domestic and foreign literature on spin-off listing;Secondly,clear the relevant concepts,models and theoretical basis of the split listing;Thirdly,it briefly describes the development process of China’s spin-off listing,and introduces the basic situation,spin-off process and spin-off motivation of Kingsoft Software and the spin-off object Kingsoft Office;Finally,analyze the performance of the parent and subsidiary companies before and after the spin-off,analyze the short-term performance of Kingsoft before and after the spin-off using the event research method,and then study the financial performance of Kingsoft Software and Kingsoft Office before and after the spin-off from four aspects of profit,liability,operation and cash flow,explore the specific reasons behind the indicators,and finally analyze and summarize the non-financial performance of Kingsoft Office.The case study shows that it is the right business strategy for Kingsoft Software to split Kingsoft Office.When Kingsoft Software first released the announcement of the split of Kingsoft Office,the short-term market performance was positive.On the first day of the listing of Kingsoft Office,due to the divestiture of high-quality assets,the company’s value was reassessed,and the short-term market performance was negative;For the subsidiary Kingsoft Office,the premium rate of the first day of listing of Kingsoft Office was 175.5%,and the share price also rose after that,reflecting the value of the company.From the perspective of financial indicators,the spin-off listing did not bring a continuous positive impact on Kingsoft Software,but most indicators of Kingsoft Office have a continuous positive performance.In terms of non-financial performance,Kingsoft Office’s brand value and market influence have been expanding,and it has continued to increase its investment in research and development and the construction of research and development teams.At the same time,it has introduced strategic investors to the market,improved the company’s governance structure and enhanced the implementation effect of equity incentives.