Research On The Performance Of Spin-off Listing

When the industry development reaches a balance and the competition among enterprises intensifies,enterprises tend to pursue the expansion of business scale to survive in the fierce market competition,so as to disperse the operating risks of a single business,seek new sources of profits and provide security guarantee for the sustainability of enterprise development.However,with the excessive expansion and diversification,the internal management process of enterprises becomes more complicated,resources are difficult to be effectively allocated,and it is easy to end up with inefficient or ineffective management,which increases the business risk of enterprises.Pragmatically,when there is a negative synergistic effect of diversification,many enterprises will adopt a shrinkage capital operation mode in time,so as to achieve the purpose of reducing the scale of enterprises through the spin-off and listing,and reduce the operating risks brought by the diversification of investment.In order to shrink the capital,some enterprises choose to split and go public,separating part of their own assets from the main body and going public.However,it was not until 2019 that China Securities Regulatory Commission(CSRC)published several regulations on domestic spin-off listing that spin-off to domestic listing became more feasible.As the medical device industry is a capital-intensive industry,there is a large demand for RESEARCH and innovation,so it also needs to constantly seek long-term financial support.In addition,various segments of the medical device industry usually have high operational independence,which can meet the higher requirements of the CSRC for spin-off listing.Therefore,the medical device industry is one of the hot industries in the market for spin-off listing.Based on such institutional background,this paper chooses Shanghai Microport Endovascular Medtech,one of the first spin-off listed companies on the Science and Technology Innovation Board.First of all,this paper consulted relevant literature and summarized the research results of former scholars.On the basis,this paper introduces the detail of Micro Port and Shanghai Microport Endovascular Medtech and the prospect of the industry,then I introduced the motivation and process of the spin-off.Event study method and Tobin’S Q value were used to analyze the influence of spin-off events on the short-term and long-term market capitalization of the parent company and observe the long-term operating performance of the subsidiaries.Finally,this paper summarizes my research conclusions on the impact of subsidiary’s spin-off and listing performance,and puts forward some feasible suggestions on spin-off and listing.Research results show that the spin off listing of the company’s share price has a positive effect in the short and long term.Another Shanghai Microport Endovascular Medtech expand the financing channels,and raised lots of funds for the company to increase investment in research and development sales channels for the company layout provides a guarantee of funds,Finally,this strengthens the core competitiveness of the enterprise.Above all,the company achieved its purpose.However,in terms of financial performance,although it has been significantly improved,due to the small size of the subsidiary,it is unable to make full use of financing funds in a short time.Therefore,it needs to further improve the efficiency of capital use.