Study On The Motivation And Effect Of The Spin-off Of Willfar Information

Spin-off listing means that the core business or subsidiary is spun off from the parent company to become an independent listed company.This is the capital market allocation of resources shrinkage asset reorganization way.The end of 20 th century was in vogue in Euramerican countries,and in our country began late.On December 13,2019,"Several Regulations" was promulgated.The emergence of the Science and Technology innovation Board set off a wave of reform of the registration system pilot within the scope of China,and promoted the asset reorganization method gradually become a popular trend in China.With the gradual expansion of the number of spin-off listed enterprises,it is gradually found that spin-off can solve the problems of enterprise operation and management,information asymmetry and other problems more efficiently.Meanwhile,spin-off and listing can bring the emergence of hot information and focus the attention of the market to the whole group,whether the parent company or the spin-off subsidiary.Enhance the group’s reputation in the industry and broaden the financing channels of the enterprise.With the development of our economy,the elements of the capital market are becoming more and more complete.More and more companies listed in Hong Kong are considering returning to A-shares to contribute,especially after the success of Kingsoft Office,cardiac medical and other companies listed,providing some routes for other companies to return.According to the above research purposes,this paper takes the case of Willfar Information spin-off and listing to the Science and Technology Innovation Board as the research object,and analyzes the transformation road of Willfar Holdings under the background of "double carbon".The focus of this paper is whether Willfar Holdings’ spin-off of Willfar Information,an Internet of Things enterprise,can produce positive effects.In the first part of this paper,this paper firstly combs the literature related to spin-off and listing,and then verifies the key concepts of "information asymmetry","financing channel","core-oriented strategy" and "management incentive theory".Then through the restoration of Willfar Holding split Willfar information case industry background,company profile case analysis and the process of equity changes to analyze layer by layer.Then,it systematically explores the motivation for the spin-off of Willfar Information from five aspects,which are mainly policy-driven,value enhancement,financing expansion,business concentration and strategic adjustment.After that,it focuses on the analysis of the effect after the spin-off and listing,from the external market effect and internal governance effect to carry on the discussion.This paper focuses on the effect study and adopts the event study method to study the effect of short-term market.The exploration of short-term change starts from the stock price fluctuation of parent-subsidiary company and the fluctuation of excess rate of return.By correcting the market to sales ratio of enterprises to carry on the inter-industry valuation,observe whether there is an undervaluation of subsidiaries;Then through DEA model evaluation index,internal business focus,equity incentive,industry position and other research.Finally,it was found that once the news of spin-off listing was released,the enterprise received positive reactions from investors in a short period of time,which enhanced the overall visibility of the parent-subsidiary company.In the medium and long term,standardizing internal governance and maintaining talent stickiness after listing can enhance enterprise value.However,whether Willfar information can maintain this positive state still needs a deeper level of tracking.Finally,based on the conclusions obtained,this paper summarizes the relevant spin-off and listing suggestions,hoping to provide a feasible reference for companies that also have this intention.