Research On The Motivation And Effect Of Weigao Orthopedics' Spin-off Listin

With the landing of China’s spin-off and listing rules in 2019,many domestic enterprises began to formulate plans to spin off and list eligible subsidiaries,and since then China has begun to set off a boom in spin-off and listing.Correspondingly,due to the late start of spinoff and listing in China,there are relatively few studies on such studies,and since 2019 to June 30,2022,87 companies in China have issued announcements to spin off and list subsidiaries,eligible companies have shown great enthusiasm for spin-off and listing of subsidiaries,and it is foreseeable that many companies will participate in the spin-off and listing team in the future.Therefore,this thesis takes the spin-off and listing of Wego Orthopedics as the research object of this thesis,and studies and discusses the motivation of its spin-off and listing and the effect of spin-off and listing,hoping that through the research of this thesis,it can enlighten enterprises that plan to spin off and list subsidiaries in the future.On the basis of combing a large number of studies on spin-off and listing at home and abroad,the case study method was used to study the spin-off and listing of Wego Orthopedics,and according to the information asymmetry theory,financing strategy theory,business concentration theory and management incentive theory,combined with the actual situation of the case company,the motivation of the spin-off and listing of Wego Orthopedics was analyzed,and the spin-off effect was analyzed from four aspects: market effect,financing effect,operation effect and governance effect,and conclusions and enlightenment were drawn.The study found that in the process of spin-off and listing,when the parent company Wego Co.,Ltd.announced to the outside world for the first time that it intended to list its subsidiary,it had a positive impact on the stock price of the parent company,and when Wego Orthopedics officially landed on the Science and Technology Innovation Board,due to the impact of negative factors in the market,it did not bring positive excess yield performance to the stock price of the parent company;After the listing of its subsidiary,Wego Orthopedics,it raised a large amount of funds and improved its capital structure and effectively improved its short-term solvency;Although the company entered into an equity incentive plan before listing,from the analysis of governance effects,the company’s equity incentive plan did not play an obvious effect,and the spin-off and listing can restrict the related party transactions of the enterprise in the rules,and the reduction of information transparency can also strengthen the external supervision of the company to a certain extent,which has positive significance for the operation and governance of the enterprise.In this regard,relevant enlightenment was obtained: the spin-off and listing should be combined with the needs of the company’s development,the appropriate sector should be selected for the subsidiary before the spin-off and listing,and the long-term development of the company should be paid attention to after the spin-off and listing.