| M&A(Merger & Acquisition) is a significant mean to realize the optimization of resource distribution and the ever-lasting theme in the securities market. Many non-listed companies fulfill backdoor listing by purchasing listed companies, who realize the optimization of resource distribution and push the development of the domestic securities market. General speaking, backdoor listing is a kind of reorganization to enter the market that non-listed companies or enterprises achieve control right from the listed companies, thus help to inject funds and introduce business to listed companies to meet the goal of entering the market. In this paper,it chooses this micro financial phenomenon as study object to analyze the reason from the theoretical perspective and achieve conclusions conforming to China’s reality from the empirical perspective. This thesis has great theoretical and practical significance.To study the performance of backdoor listing is to study the value and effect brought by backdoor listing for companies. Concretely speaking, it is to analyze whether reorganization activities add social value, i.e. realize the efficiency of resource distribution. Point of view the domestic securities market, it is to study whether the listed company’s decision and conduct become reasonable or not, how to prevent speculative reorganization such as stories cooked up and whether the backdoor listing dealing in the securities market is standard or not.This paper regards year of 2007 when the implement of reformation of equity division as logical start for study. The main concern of this start is implement of reformation of equity division symbolized China’s securities market had entered into the full tradable time.In the full tradable circumstance, changes of both the access of liquidity and same share same price altered the value orientation and behavior pattern of the market subject, thus caused the deep change of the M&A market. One significant change is that listed companies got rid of obsession of equity division and finally the M&A,the commonest capital mean, galloped on the capital market. We can see that, in 2007, domestic securities market remolded after experiencing the reformation of equity division,accessing rapid development and became a star in the international market. The M&A in this year provides abundant material for the study in this paper.It adopts empirical study method in this paper, starting empirical study on the domestic company’s performance issue of backdoor listing. The aim of empirical study is to verify a variety of theories. From the political perspective, the aim of this paper is to ascertain whether the M&A activity add social value or not, i.e. realize the efficiency of resource distribution. From the company business perspective, the empirical study is aim at observing whether the M&A activity improves the company performance and return on equity. In other words, the empirical study of this paper is aim at verifying if company reorganization improves the financial performance and causes the re-evaluation on the company stock.The breakthrough point of the empirical study in this paper is method of event study. The method of event study is the important empirical mean in financial study. Method of event study is kind of statistical method used for studying if the share price emerges fluctuation and "abnormal return",thus helps to understand if the fluctuation of share price is related to the event. This method has superiority in the study of backdoor listing phenomenon in this paper. The complete backdoor list usually involves two phrases:financial reorganization (also called report reorganization) and value reorganization. The effect of these two phrases of reorganization can be observed from the reaction of share price. In the phrase of financial reorganization, it will usually bring the effect that sparrow grows to phoenix and the tremendous increase of share price that attracts huge of investors and make the market being keen of hype on theme stock. In the phrase of value reorganization, because of the improvement of company business and financial index, the share price will change accordingly. Therefore, we can analyze the performance of backdoor listing on the perspective of performance of share price. This is the logic of adopting event study method in this paper. By virtue of performance of share price before and after backdoor listing, this paper studies the performance of backdoor listing and analyzes the specific phenomenon and characteristic in domestic market. In the application of event study method, this paper apply method of Cumulative Abnormal Return (CAR) to verify the market reaction of company’s backdoor listing. The CAR method is mainly used for verifying if a group of enterprises’return of ordinary stock is higher than the estimated amount based on the market risk and return relationship. The empirical study based on CAR method strives to prove whether the company’s merge activity brings positive return increase or supernormal return to the participants. CAR method judges influence of company’s merge activity to share value, i.e. verifies the impact of merge activity to share investment efficiency with supernormal return rate of shares. The key issue to apply CAR method is how to judge the supernormal return rate. There are three steps in this paper to calculate the supernormal return rate. Firstly, to confirm the event period for calculating the supernormal return rate. Secondly, to calculate the Expected Normal Return of every sample company during the event period. Then, to calculate the surplus amount (i.e. supernormal return which is the balance by deducting the sample company’s Expected Normal Return from the daily real return during the event period.) Finally, to calculate the accumulated average Cumulative Abnormal Return to verify M&A activity’s total average impact to the company.In the empirical study process, this paper introduces the financial tool, Fama-French(FF) three-factor model. The introduction of this financial tool is to analyze the domestic market’s performance of backdoor listing on a new perspective, which is the key point and also the difficulty of this paper. From CAPM model to three-factor model, it is a great leap of capital pricing model. FF model’s ability in telling the Expected Return Rate is stronger than CAPM model. This advantage is especially reflected in the study to event in a comparatively long period that based on the share market’s monthly data. This is exactly the essence to introduce FF model as a tool to study backdoor listing. Currently, Fama-French three-factor model is widely used in event study in the foreign countries. However, the domestic application of FF three factor model is still mostly limited to the demonstration test and investment portfolio and is comparatively few in the event study. Consequently, for the backdoor listing company, this paper tries to adopt more accurate FF model to set up the metric relationship among four observable statistics, Expected Return Rate, market risk, market value scale and paper market value rate. This helps to provide experimental evidence for analyzing the performance of backdoor listing. After the reformation of equity division, most of the scholars only studied the phenomenon of market reaction and instructional influence. A few of the scholars studies the change of backdoor listing before and after the reformation of equity division and had no specific conclusion of their study. For this reason, in this paper, it tries to analyze and study the impact of accumulated excess earning before and after backdoor listing to offer beneficial inspiration for people to understand the performance of backdoor listing.In the end, it analyzes the demonstration result in this paper. The excess earning rate is told by chart. We can clearly find the characteristic of change to excess earning rate. The characteristic can reflect the non-standard of behavior in domestic backdoor listing.In the meantime,it gives related proposals against the non-standard in this paper. |
PDF Full Text Request