Research On The Motivation And Economic Consequences Of Spin-off And Listing Of Pharmaceutical Enterprises

In the early 1980 s,many European and American countries started a boom in mergers and acquisitions,but the diversified mergers and acquisitions and reorganizations led to the reduction of corporate governance efficiency,forming a negative synergy effect.In order to eliminate the disadvantages of excessive mergers and acquisitions,enterprises tend to improve the adverse effects of diversified mergers and acquisitions by means of spin-off and listing and by means of shrinking capital operation.The demerger listing system in our country is still in the process of perfecting,from groping to "not encouraging,not supportive" to pilot experiment and "demerger heat".After the Regulations on the Pilot Domestic Listing of Listed Companies by spin-off of Their Subsidiaries were issued in 2019,spin-off and listing ushered in the spring,and more high-tech companies listed overseas chose to list in China.This paper studies the relevant literature of spin-off listing at home and abroad,and finds that there are few cases of spin-off listing enterprises in China,the cases are old,and the case studies after the new regulations in 2019 are insufficient.And the pharmaceutical industry as a higher content of innovation and scientific and technological means of the field,spin-off listing can more meet the needs of its development.Therefore,this paper takes pharmaceutical enterprises as the research object.Firstly,it summarizes and comments the domestic and foreign research results and theoretical basis,and sorts out the related concepts and connotations of spin-off listing.Secondly,combined with the industry environment and the situation of enterprises,analyze the internal and external motivations for the spin-off and listing of pharmaceutical enterprises;Then,according to the event study method,financial performance,economic added value and non-financial performance,the economic consequences are analyzed.Finally,summarize the conclusions and suggestions of the separation of pharmaceutical enterprises,and expound the shortcomings and future prospects.Finally,four main conclusions are drawn:(1)Splitting and listing the market value of pharmaceutical enterprises is reasonable,but attention should be paid to the "hollowing out" of companies after splitting.(2)Spin-off and listing will promote the core strategy of pharmaceutical enterprises,refocus on the main pharmaceutical business area,and improve the operating capacity,profitability,solvency and development capacity.(3)Spin-off and listing can increase the financing ability of pharmaceutical enterprises,improve the ability of R&D and innovation,reduce the financial pressure,and also provide an independent and stable financing platform for subsidiaries after spin-off.(4)Spin-off and listing can stimulate the management efficiency of pharmaceutical enterprises,so as to motivate the management of subsidiaries and stimulate their work enthusiasm.At the same time,suggestions based on the conclusions of the above research are put forward.Pharmaceutical enterprises need to grasp the opportunity in the spin-off listing,combined with the spin-off motivation,corporate strategy and status quo,stable market value,pay attention to long-term development;Increase revenue and profit based on core business;It is necessary to carry out targeted spin-off and select high-quality assets for spin-off in order to achieve the desired purpose.In view of the "spin-off fever" period is coming,this paper believes that spin-off and listing will bring overlapping advantages to pharmaceutical enterprises,assist the orderly development of relevant strategies and management of enterprises,and contribute to the long-term development of pharmaceutical enterprises.It is hoped that this paper can enrich the case study of Chinese spin-off listing and provide reference experience for pharmaceutical enterprises and other similar enterprises to be spin-off listing.