Rearch On The Motivation And Effect Of Huabao’s Spin-off And Listing

With the development of diversified expansion strategy of enterprises,its negative effects will follow,and more and more enterprises that need to carry out asset reorganization choose to use the tool of spin-off and listing to obtain good development.At the same time,the launch of my country’s GEM in recent years has enhanced the willingness of many companies to spin off and list on the domestic GEM.Generally speaking,the spin-off and listing of a company can help the company avoid potential risks caused by blind expansion,help the company’s strategic transformation,and can also bring sufficient liquidity to the company and increase the value of the issuer’s shares.However,in the actual operation process,scholars at home and abroad have not drawn a unified conclusion on the effect of spin-off and listing on enterprises.Therefore,it is of certain research significance to study the motivation and effect of enterprises choosing to spin off and go public,and to explore how to make enterprises achieve good development after spin off and go public.Based on the case study method,this paper takes the spin-off and listing of Huabao shares on the GEM of the Shenzhen Stock Exchange as an example,and uses the literature research method to read and summarize the relevant researches on spin-off and listing at home and abroad.The current situation is to study the motivation and effect of Huabao’s spin-off and listing.Regarding the reasons for the spin-off and listing of Huabao shares,this paper analyzes it based on the financing theory,core strategy theory and information asymmetry theory;as for the effect of Huabao shares’ spin-off and listing,this article is based on short-term market response and financing,governance and operation.This paper analyzes the long-term and short-term effects of the spin-off and listing of Huabao shares in detail,in order to provide reference and reference for other companies that plan to spin-off and listing,and maximize the use of spin-off and listing to increase corporate benefits.The study found that the motivation of Huabao’s spin-off and listing is to expand financing channels,strengthen R&D and innovation through financing,and further expand the market;and professional management of core businesses to improve core competitiveness;in addition,by reducing information asymmetry in the market.,enhance company value.Regarding the effect of Huabao shares after the spin-off and listing,we first analyze the short-term capital market effect based on the changes of stock price and cumulative excess return,and the study finds that the short-term positive effect of spin-off and listing on Huabao shares is very limited;Secondly,through the analysis of its long-term financing,governance and operating effects,it is found that the positive effects brought by the spin-off and listing to Huabao are limited in terms of influence and sustainability.We believe that the reasons for this result may have the following two points: the company neglects the operation and development,the management ability is limited,the internal governance structure of the company is not perfect,and the management’s incentive is insufficient.Therefore,the positive effect brought by the spin-off and listing is short-lived and limited.If an enterprise wants to achieve long-term sustainable development,it must pay attention to its own professional operation,fundamentally improve its management ability,and build its own core competitiveness.