Study On The Motivation And Economic Consequences Of The Spin-off Listing Of Blue Bird Fire

Since entering the digital age,the country’s macroeconomic development momentum has been strong,which has also actively promoted China’s capital market to a more reasonable and sound development track.However,on the other hand,the increasingly intensified market competition will push the company to continuously improve its resource allocation efficiency.Broadening the resource channels of subsidiaries,improving the operating performance and changing the operating strategy are important driving forces for enterprises to choose spin-off listing.However,although spin-off listing plays a role in improving the company’s operating performance,enhancing the company’s value and promoting strategic change,its development in our country is not mature enough as a very important way of asset reorganization,so there is a need to study the spin-off listed case companies in our securities market.At the same time,with the sustained and healthy development of the national economy,the fire products industry has benefited a lot.In the past few years,Chinese residents and enterprises have been at a high level of investment in fixed assets,driving the demand for fire products has also been significantly increased,thus promoting the rapid development of the industry.This paper will take the leading enterprise of the intelligent fire industry— Green bird Fire to the specific study of the spin-off and listing case.This paper is carried out in the way of case study.Firstly,some literatures and relevant theoretical knowledge related to the motivation and economic effect of spin-off listing are collected and sorted out to form the research idea of this paper.Secondly,it analyzes the motivation for the spin-off listing of Bluebird Fire Protection,and studies a series of economic effects brought by the spin-off listing from the perspective of value creation.For the evaluation of the former stock price effect,the event study method is adopted to analyze the stock price effect of the parent company after listing,and the specific performance of the latter value creation is studied from the perspective of financing effect,operating effect and governance effect.The study found that the spin-off listing had a positive impact on the bluebird fire protection.In terms of stock price effect,after the announcement of the Green bird Fire division listing,the company’s market reaction is positive,enterprise value has increased.At the same time,it can be seen from the direction of value creation that the capital structure of the company has been optimized and the financing ability has been improved after the spin-off of the company is independent of the A-share listing.The professional development strategy makes the profitability and innovation research and development ability to be improved,and the operation effect can be realized.The improvement of supervision mechanism and incentive mechanism has improved the asset management level of the company and the governance effect has been effectively realized.