Studies On Back-door Listing Of Northeast Securities

Merger has aroused great concern of the public in recent years. While backdoor listing is a hot topic is on China's capital market. as a way of non-IPO, backdoor listing find ways for SMEs to listed market. Non-listed companies gain control of listed companies through net shell companies achieving market situation indirectly. The special nature of such transactions is that, once completed the acquisition, listed company's personnel and assets will be stripped out from the listed companies, just leaving a shell company. This means that the operating range of listed companies, financial condition and operating results will have a undamental shift as the entry of new shareholders. As the popularity of backdoor listing, relent theory naturally became a hot issue, especially for accounting problem. different accounting choices for mergers have different accounting consequences for backdoor listing companies. In addition, whether the backdoor listing has meet the enterprise expectation and accelerate the development of enterprises are worth discussing.To provide reference for securities company listing, this paper focus the case of Northeast Securities and present and analyze the backdoor listing process, financial issues, accounting issues, performance issues from multiple perspectives. This paper focuses on the motivation of Northeast Securities backdoor listing, consolidated accounting treatment and post-performance analysis of backdoor listing. Motivation is analyzed from two sides, describes the unique characteristics of the both sides; For accounting treatment, since there was no original corresponding guidelines, financial report was prepared according to international financial reporting standards. In 2008, China issued the appropriate accounting standards, therefore, the reverse merger accounting treatment of the merger has standards to comply; For the performance analysis, we use the method of accounting indicators, compare the Northeast Securities backdoor listing of indicators before and after, and find that the development after the reverse merger of Northeast Securities is rapid, the reverse merger is beneficial.The unique characteristic of this paper is that this study is base on one case, rather than a certain number of samples for analysis. We analyzed a wide range of issues based on this case making SMEs have a general understanding for backdoor listing problem, we also analyzed the advantages and disadvantages of backdoor listing to make useful decisions for Back Door Shangshi decisions.