An Empirical Study On Company Performance Of Different Listing Modes

Going public is an important strategy and way for enterprises to get money andenhance competitiveness. Consequently, they are eager to going public. Generallyspeaking, the ways to go public for listing companies can be divided into IPO andbackdoor listing. Then, the performance of companies really has significantly improvedafter listing? Will the performance of companies be deferent with choosing IPO andbackdoor listing? It can bring what inspiration to us? Currently, more literature focusedon the performance level of a company listed under way, for the same study listed twoways and compare the performance of the company although the gradual rise in foreigncountries and a certain amount of empirical testing, but in China, the relevant research isstill relatively small. Therefore, researching performance of different companies listed onChina’s capital market is particularly necessary and urgent.This paper selects our main market IPO listed297companies and through thebackdoor listing of76companies between2007and2009as samples. In the theoreticalpart of the study, through the analysis and review of relevant literature, Backdoor listingon the IPO and a comparative analysis of two ways, conducting comparative analyzing tothe two ways of IPO and backdoor listing,and redefine the backdoor listing, companyperformance and other related concepts. In the empirical research, Listed on thecompany’s performance in different ways are respectively conducted longitudinal studyfrom the market performance and financial performance perspectives. On this basis, thearticle also listed on the company’s performance in two ways under a comparative study,to learn if there is a big difference, and to analyze the reasons for the differences.This study found that the performance of companies listed through IPO had somedegree of improvement, especially market performance of IPO listed companies greatlyincreased. The financial performance of companies listed through backdoor were notgood but increased obviously. Backdoor companies’ market performance increasedgreatly. The comparative study of corporate performance with both methods listed, inmarket performance level, backdoor listing companies in most of the time are better than IPO companies, but in the latter part of the latter gradually beyond. In addition, on thestability, IPO companies are obviously stronger than the backdoor listing companies, thisindicates that the company share price performance backdoor is good, but risky; infinancial performance level, backdoor listing company listed at the beginning of theperformance is not eye-catching, but there is a substantial improvement in the second andthird years. However, compared with the IPO of listed companies, its financialperformance is still evident at a disadvantage.