Research On The Motivation And Value Impact Of The Country Garden Service Spin-off And Listing

With the continuous development of the capital market,the asset restructuring method of spin-off and listing has begun to come into people’s attention.The spin-off listing first appeared in the United States,and then became popular in the European capital market.It was not until 2000 that the spin-off listing began to appear on the stage of the domestic capital market.As a contractionary asset restructuring method,spin-off and listing are of great significance to the development of enterprises.As far as real estate enterprises are concerned,due to their capital-intensive characteristics,the defects of over-reliance on bank loans are constantly emerging,and the high cost of loan funds makes In recent years,the development of my country’s real estate companies has shown a weak trend.Therefore,many real estate companies have begun to use the spin-off and listing of their property sectors as the main means of strategic transformation.After the spin-off and listing,the company can directly raise funds through the capital market,which effectively reduces its high borrowing costs.Equity incentives at the upper level,reducing agency costs,improving management efficiency and operating efficiency,thereby promoting the growth of the company’s value.With the continuous improvement of my country’s spin-off and listing system,the advantages of spin-off and listing for companies to create good economic value are constantly being reflected.Through the study of domestic and foreign literature,it can be found that the economic value brought by the spin-off and listing is particularly significant in the short term.Although the growth of the long-term economic value is not as significant as the short-term,it is generally positive.The research started late,and there are few case studies.In addition,the research direction of spin-off and listing is mostly from the perspective of corporate performance.There are few discussions on how spin-off and listing affect corporate value.Therefore,this article starts with a single case and discusses How listing can promote the growth of enterprise value.Based on this,this paper selects the listing event of Country Garden’s spin-off of Country Garden Services as the case study object,and discusses the motivation and value impact of Country Garden’s Hong Kong stock spin-off and listing based on information asymmetry theory,financing strategy theory,principal-agent theory and life cycle theory.Financial data,research and analysis of the financing effects,operating effects and governance effects of its spin-off and listing,and comprehensive indicators to evaluate the value impact of the spin-off and listing on Country Garden’s services.Based on the above research direction,this paper draws the following conclusions:(1)In the collation and research of public information,it is found that the reasons for the spin-off and listing of Country Garden Services mainly include the need to expand financing channels,strengthen management incentives,optimize market value management,promote industry development,and optimize the external environment;(2)After the spin-off and listing,Country Garden Services obtained a higher market valuation by reducing information asymmetry and broadened financing channels.On the one hand,the increase in cash flow improved its ability to pay cash and repay debts On the other hand,the structure of assets and liabilities is also optimized to achieve financing effects and enhance corporate value;(3)After listing,Country Garden Services is committed to expanding market share through horizontal and vertical mergers and acquisitions,and the scale of the company has been expanded,which is reflected in the company’s In terms of the increase in total assets,total income and management area,and the independent operation of Country Garden Services,with the help of a diversified business development model,while promoting the rapid development of corporate value-added services,it also promotes the improvement of its own profitability in the short term.The positive development trend has once again increased the value of the enterprise;(4)According to the rules of the Hong Kong Stock Exchange,Country Garden Services has improved the internal organizational structure of the company,achieved power checks and balances and improved corporate governance efficiency through the establishment of a board of directors committee.The stickiness of internal personnel and the sound development of governance effects have also promoted the improvement of corporate value from the inside;(5)The spin-off and listing not only enabled Country Garden Services to gain recognition from the capital market,but also facilitated its value creation,which was reflected in its short-term market response,short-term stock price changes,and changes in Tobin’s Q value.Therefore,on the whole,this spin-off and listing has improved the overall value of Country Garden’s services.At the same time,based on the above research,this paper puts forward the following suggestions for relevant companies: first,choose a spin-off and listing rationally according to the specific conditions of the company;second,to pay attention to the long-term development ability of the enterprise after spin-off and listing.