Research On The Short-term Stock Price Effect Of Domestic Spin-off And Listing Announcements Of Listed Companies In China

As a capital operation mode contrary to mergers and acquisitions,spin-off and listing refers to the act of reorganizing and listing in the name of a subsidiary by separating an asset or business of an enterprise and conducting an initial public offering and listing.The spin-off and listing can not only ease the financing pressure of enterprises,but also enable parents and subsidiaries to better focus on their main business and enhance the positive synergy between parents and subsidiaries.In addition,according to the signal transmission theory,spin-off and listing can also send a signal to the market that the value of the enterprise is undervalued,so that the listed company can obtain valuation repair.Since the CSRC issued the Several Provisions on the Pilot of Domestic Spin-off and Listing of Subsidiaries of Listed Companies(hereinafter referred to as Document No.27)in 2019,China’s spin-off and listing has entered a stage of vigorous development,according to statistics,as of June 2022 More than 100 enterprises have issued spin-off and listing announcements or plans,and 8 companies have achieved spin-off and listing in the first half of 2022 alone,and the promotion of domestic spin-off and listing has in turn promoted the further development of China’s multi-level capital market construction.The opening of the Beijing Stock Exchange in November 2021 marked another big step forward in the construction of China’s multi-level capital market,and a more inclusive capital market provided an endogenous impetus for the rapid development of domestic spin-offs and listings.The continuous improvement of the domestic spin-off and listing environment also provides a more sufficient sample for academic research on domestic spin-off and listing.This article uses Juchao Information Network to sort out the companies that announced the spin-off and listing announcement or plan from the publication of Document No.27,2019 to June 2022 as a research sample for this article,and screens the 5 trading days before and after the event window(T?[-5,5])Cleaning samples were obtained after the publication of other announcements.In order to better study the shortterm stock price effect of spin-off and listing announcements,this paper uses the event research method to conduct empirical research,and conducts group research according to the perfection of announcement disclosure,the spin-off and listing sector,the nature of the parent company’s property rights and business concentration.In order to further explore the influence mechanism of the short-term stock price effect of the spin-off and listing announcement,this paper uses multiple linear regression to analyze it,and draws the following empirical conclusions:First,the domestic spin-off and listing announcement does have a short-term positive stock price effect,and the more perfect the announcement information disclosure,the higher the cumulative excess rate of return obtained by the parent company in the event window,while the property rights of the parent company have no significant impact on the cumulative excess rate of return of the event window.Second,the difference in the spin-off and listing sector will affect the cumulative excess yield of the parent company during the event window,specifically,the cumulative excess return obtained by the parent company’s spin-off of its subsidiary to the STAR Board is higher,and this phenomenon is particularly significant in highfinancing constrained enterprises and enterprises with better information disclosure plan groups.Third,the concentration of the parent company’s business is negatively correlated with the parent company’s cumulative excess return in the event window,that is,the more dispersed the parent company’s business is(non-specialized and special new enterprises).,the higher the cumulative excess yield obtained on the announcement date;Fourth,the operating performance of the parent company is positively correlated with its cumulative excess return in the event window,and is more pronounced in high-financing-constrained enterprises.Fifth,there is a moderating effect between the business concentration of the parent company and its operating performance,that is,the enterprise with lower business concentration can boost the expectation of an increase in the operating performance of its main business in the future,thereby pushing up the cumulative excess rate of return of the parent company during the event window.Finally,based on the empirical test results,this paper puts forward the following suggestions based on investors,listed companies and regulators:when spin-off and listing,listed companies should choose the type of spin-off listing that meets their own conditions and the spin-off listing sector based on their own characteristics and the motivation for spin-off and listing,and try to choose cross-industry spin-off to avoid intra-industry competition and better focus on the main business.In addition,in terms of information disclosure in spin-off and listing announcements,listed companies should try to publish more spin-off plans for spin-off listing information and comply with the relevant rules of the CSRC on domestic spin-off and listing;When making investment decisions,investors in the secondary market should first carefully read the spin-off and listing plan,and avoid blindly "chasing the rise and killing the fall",because some funds are quickly realized and left the market one day after the spin-off and listing announcement.Secondly,we should focus on the parent company that spins off its subsidiary to be listed on the STAR Board and the parent company with better operating performance;Regulators still need to further strengthen the supervision of spin-off and listing in the same industry,strengthen the information disclosure system for spin-off and listing,and increase the punishment of related party transactions.