The Theoretical And Empirical Studies On Back-door Listing Performance Of Securities Firm

M&A of listed companies has long been the focus in many countries .Whether M&A can effectively improve the performance of listed companies has drawn great attention both in the foreign and domestic academia. Nowadays there have been large amount of theoretical and empirical studies on M&A performance. However, comprehensively, there is great uncertainty concerning value effect of the M&A. Back-door listing is an important M&A way for listed companies. There are lots of theories and empirical studies about it for some time past. With the development of Chinese securities market, and also because of the implementation of all kinds of dynamic financial regulation and the competition from the international investment banking, it is extremely urgent for the domestic securities firms to go to public. But the restriction of going public for securities firms by regulators, so it is very difficulty to enhance the competitive capability through going public in a short time for a securities firm. Back-door listing especially going public through buying a shell from a listed company which has not been carried out the reform of non-tradable shares may be the first choice for the securities firm to go public.In this context, it is of great importance considering the effects of M&A and its performance for our listed companies. This article is based on the viewpoints of economics and management, summarizing the M&A motivation theories in western countries and put forward the M&A motivation of domestic listed companies. Then, the research provides theoretical basis for the analysis of M&A performance of domestic listed companies. Through the comparison of the financial indicators and market reactions before and after M&A, an objective and fair judgment on the M&A effects of listed companies can be made. The research can also shed light on M&A strategies for listed companies in order to avoid certain extent of risks and blindness of M&A.Based on the critical review of research methods and empirical theories of foreign and domestic M&A performance, this research utilizes the event-study and financial index study method. The empirical study analyzes 7 sample listed companies that made backdoor listing in 2006-2007 and then studies the changes of operating performance before and after backdoor listing.The research method is different from that of the extant in two aspects: (1) Analyzing the back-door listing of the security houses which is a newly M&A mode in the capital market; (2) Analyze both market reaction and M&A performance by a mixing method of event-study and factor-analysis;...