Research On Value Creation Effect Of Qihoo 360’Spin-off Ludashi Listing

In July 2019,our country started the kechuang plate plate,spin-off subsidiary for the enterprise to the domestic market to provide the platform,the territory of China to spin off listing has his own channel.But spin-off listing requirements within the territory of the plate to the enterprise in China is more strict,especially on the related party transactions,request to strengthen the independence of listed companies,gradually reduce the related transactions,and its focus on subsidiary will compete with the parent company to produce the same industry,thus lead to split to listed in very few cases,mainly concentrated in overseas markets,especially is given priority to with the Hong Kong market.Based on such economic background,this paper takes Ludashi,who has applied for listing in Hong Kong Stock Exchange for three times since September 2018 and was officially listed in Hong Kong Stock Exchange on October 10,2019 as an example to deeply analyze the motivation and process of the spin-off listing.In addition,event study method,factor analysis method and other methods are used to analyze the value creation for qihoo 360,the parent company.The research findings are as follows: first,the spin-off listing can meet the shortterm financing needs of the parent company qihoo 360,broaden its financing channels and enhance its short-term solvency;Second,spin-off and listing motivates the management of subsidiaries and creates more wealth for the company.Thirdly,the spin-off to the Hong Kong Stock Exchange helped Qihoo 360 to obtain excess investment returns and bring short-term value creation for the company.Fourth,spinoff listing fails to effectively improve the long-term business performance of the parent company.In order to achieve long-term value creation,the parent company should pay attention to business strategy,industry environment,management level and other factors.At the end of this paper,relevant suggestions are put forward based on the conclusions,hoping to provide reference experience for the parent company to choose spin-off subsidiary listing.