The Research On The Drive And Performances Of Back Door Listing In China

As one kind of system derivative, the shell resources is easier to be affected bythe renewal, change of the system, the historical condition and also the traditionalculture. It is no doubt that the using shell company mode will be affected when thereis no change in historical condition. In our country the number of public company israre, many private company are hard to become the listed company, so buying a shellcompany become another channel to security.Back door listing is a universally concerned problem in China today, and it isalso an important way in which the company can accomplish strategic development.In comparison with the ordinary company, the superiority of the listing company liesin that it makes use of its way of rising, funds in securities market to make thecompany achieve the rapid growth. In the same time, back door listing is anacquisition form that can make full use of the resources of the listing company.Although there exists the demand for becoming listed company, what about the effectof back door listing on earth? How are the performances of Shell Company during theperiod of buying shell? Many literatures are about analysis for effect of M&A, but asfar the mode of shell is concerned, there are little discuss in academe. on the otherhand, there is a little thesis in academe. The actuality makes our research possible.In fact, we can research these cases to find out the characteristic, motivation,performances in process of back door listing, and also we can learn the experience toavoid the negative factors. In this aiticle, first we make a theory frame which isbased on the M&A theory to analyze the inter drive of the Back door listing in thecapital market in our country. In this procedure, we can research the key parts of thisasset reconstructing such as motivation, performance and so on. Furthermore, wecollect the 40 stocks, which accord with criterion of back door listing during 2000and2005 in the securities market in China, and analyze the change of operationperformance of the company during the period of "buying Shell Company". At last,we provide some preferences and evidence for the company and government.