Research On The Value Creation Of BCHT’s Spin-Off Listing

Since 2019,the spin-off policies that have been issued in succession indicate that China’s attitude towards spin-off listing has begun to change.In addition,the emergence of the SSE STAR Market has also made the spin-off listing of enterprises more convenient.Recently,spin-off listing has become a hot topic in the capital market.Spin-off listing is an effective way for the market to adjust the distribution of resources.Spin-off listing can help listed companies integrate and optimize their business structure and concentrate limited resources to develop their main businesses.The optimization of the external environment and the characteristics of the split listing have attracted a large number of listed companies to take the path of the split listing,of which the higher proportion is biopharmaceutical enterprises.In response to this phenomenon,this paper selects Changchun Bcht Biotechnology Co.,a subsidiary of Changchun High-Tech Industries(Group)Inc.which is a leading biomedical industry enterprise,as the research object.It starts with the motivation of the enterprise to formulate the split listing plan,and then studies the path of its value creation from the four aspects of financing,market,operation and governance,and tests the final result of its value creation through specific indicators.It is hoped that the in-depth analysis of this case will provide valuable suggestions for the domestic spin-off listing of biopharmaceutical enterprises.Firstly,based on the theories of management incentive theory,information asymmetry theory and other theories,this paper clarifies the research ideas of the impact of the spin-off listing on the value of subsidiaries,and then uses the methods of event study and case study to explore the impact of the spin-off listing on the value of subsidiaries from the four aspects of financing,market,operation and governance,combining with the value creation path and specific indicators.Finally,the research findings of this paper are as follows: First,the motivation for the spin-off listing of Changchun Bcht Biotechnology Co.is to obtain financing,send signals of undervalued value to the market,achieve business focus and improve corporate governance efficiency.Second,after the spin-off and listing,Changchun Bcht Biotechnology Co.improved its financing situation,realized the value release and improved the governance effect,but its operating performance declined.Finally,the conclusion of this paper is as follows: in terms of financing,spin-off listing can increase the financing channels of enterprises,improve the capital structure,reduce financial risks,and realize the demand of biopharmaceutical enterprises for research and development funds.In the market,the parent company’s disclosure of the news of the spin-off listing is in the eyes of investors to transmit the news that the value of the subsidiary is undervalued to the outside world.After the corporate spin-off and listing,the subsidiaries began to disclose information on operation and finance to the market,so that the public could have a deeper understanding of it.The information release was more frequent than before the spin-off and listing,which is conducive to improving the popularity of the subsidiaries in the hearts of consumers.Positive information can enable investors in the market to have confidence in the subsidiaries,so as to achieve the improvement of company Value.In terms of business performance,the enterprises’ efforts in production,R&D and marketing after the split and listing may not fully make up for the decline of their performance.In terms of corporate governance,subsidiaries have effectively improved the management level of managers by improving the organizational structure,reducing equity concentration and equity incentives.