Research On The Motivation And Performance Of Poly Property’s Spin-off And Listing

Benefiting from the rapid economic development,Chinese enterprises have carried out rapid expansion and mergers and acquisitions in a short period of time,and subsequently a series of large-scale group companies with diversified businesses have emerged,such as Poly Development and Country Garden among real estate enterprises.Diversification too quickly and blindly has brought many negative impacts to the group companies.Many companies have adopted the method of spin-off and listing to eliminate the "negative synergy effect" brought about by diversification.attention of all parties.Spin-off and listing is a contractionary strategy in asset restructuring.The group company spins off subsidiaries or a certain business segment to be listed on the capital market,which can enable parent and subsidiary companies to focus more on their own advantageous businesses,thereby improving operational management efficiency and making full use of the current situation.There are assets that create value for the company.At the same time,thanks to the independent operating status and sufficient funds,the subsidiaries can fully release their own market value,and can also better develop their own businesses with the help of the capital market.Therefore,more and more companies put spin-off and listing plans on the agenda.This paper selects Poly Property as the research object,and studies the case of Poly Property’s spin-off and listing based on literature research method and case study method.On the one hand,it uses the literature research method to sort out the literature data of domestic and foreign scholars on spin-off and listing,and summarizes the motivation and performance impact of spin-off and listing on the basis of the analysis of literature data.On the other hand,based on the case study method,firstly,the background of Poly Development,Poly Property and the development status of the property management industry is expounded;secondly,the motivation for the spin-off and listing of Poly Property is analyzed by using the theory of spin-off and listing;The method and location selection of Poly Property’s spin-off and listing are analyzed,and its listing process is introduced.Finally,the event research method is used to analyze the stock price and excess return of Poly Development.By analyzing its financial indicators,non-financial indicators and calculating its economic added value(EVA)to evaluate the performance changes before and after the spin-off and listing of Poly Property,dig deep into the reasons for its performance changes,and draw relevant research conclusions and enlightenments on this basis.Through research,it is found that after the spin-off and listing of Poly Property,the parent company has not obtained short-term excess returns,and the financial performance of the subsidiary has not been significantly improved,but its market value has been greatly improved,effectively broadening financing channels.Three inspirations were drawn:choosing a development path reasonably,improving risk response capabilities,and actively exploring new markets.It is hoped that this case can provide a reference for companies preparing for spin-off and listing,so as to promote the development and improvement of the asset restructuring method of spin-off and listing.