Research On Motivation And Value Creation Effect Of The Spin-off And Listing

As one of the most important ways to allocate resources and restructure assets,spin-offs first appeared in the 1960 s and are often used internationally as an important means for diversified companies to enhance the concentration of their main business,operational efficiency and valuation.Prior to 2019,the policy on domestic spin-offs was unclear,with large differences between domestic and foreign audits and cumbersome approval processes.As the current domestic spin-off mechanism continues to improve,supporting policies continue to be introduced,and the regulatory environment gradually matures,especially the Science and Technology Innovation Board,the Growth Enterprise Market,and the Beijing Stock Exchange provide venues and channels for investors to invest in innovative companies,more companies are expected to undergo domestic spin-offs in the future.At present,most domestic and foreign scholars focus on overseas spin-offs,and there are fewer studies on the domestic listing of spin-off subsidiaries.Therefore,this paperThis paper selects the case of Hong Kong stock spin-off to domestic science and technology board-Wisepac Holdings’ spin-off of Wisepac Information-to study the motivation and effect of its spin-off,hoping to provide some reference for other companies to conduct spin-offs.This paper adopts the case study method,literature research method,event research method,financial index analysis method and non-financial index analysis method in the research process.The research ideas of this paper are as follows: firstly,this paper compares the literature and theories related to spin-offs at home and abroad and presents the research value of this paper;secondly,it summarizes the process of spin-offs and the characteristics of IOT industry in China and introduces the case study of this paper;secondly,it focuses on analyzing the motivation of Wisepac’s spin-off and why it chose to spin-off to KCI,its performance after spinoff and even the subsequent impact on the company’s development;finally,it summarizes the case Finally,the case is summarized.The results of the study show that,on the whole,the successful spin-off of Wisepac is the result of the long-term strategic planning of the company,and the spin-off satisfies the needs of each parent and subsidiary,which helps to improve the overall performance of the company.From the perspective of capital market response,the stock price of both parent and subsidiary companies has been improved and the market response is positive due to the reduction of information asymmetry,and the positive economic benefits are significant;from the perspective of financial performance,considering factors such as its own management level and external market,the spin-off has a weak impact on the overall performance of the parent company,but for the subsidiary company,the IPO has raised sufficient funds,thus bringing significant positive financial impact to the enterprise In terms of non-financial performance,both the parent and the subsidiary performed well.The following insights are obtained: firstly,we should select high-quality and undervalued subsidiaries for spin-off;secondly,we should select suitable segments for spin-off;thirdly,the spin-off companies can implement management incentives appropriately.