Analysis Of Chinese Enterprises Backdoor Listing Mode And Effects

In China, private companies regard reverse mergers to be a shortcut to go public to substitute the IPOs. Considering that a reverse merger is a special type of mergers and acquisitions, I review the theories of mergers and acquisitions and the existing relevant research. Then, I introduce event study and linear regression model before I use them to do my research. After finish collecting 70 reverse mergers in Chinese securities market from 2009 to June,2014,I choose an event window (-30,+30) to measure the abnormal returns which can show the post-merger performance of reverse mergers. Then I selected the largest backdoor case in A-share market-Xinwei Telecom backdoor ZCTT as a case further reason Xinwei Telecom listed backdoor listing the selected mode and effects of its listed for further analysis..