Is the spin-off listing good or bad for the parent company?
The parent company has many positive factors, including the following:
1 get financing. This is the most direct and obvious benefit.
2 improve performance. After the successful listing of spin-off assets, excess investment income will be formed in the financial statements of the parent company, and the overall financial structure will be more optimized, thus improving market recognition.
Streamline the business of the parent company, so as to improve the operating efficiency of the parent company.
These are some factors that are beneficial to the parent company. In fact, spin-off also has many benefits for subsidiaries. The most important point is that the role of equity incentive has been greatly improved, which helps to improve the enthusiasm of management.