Analysis On Chinese Enterprises Backdoor Listing Mode’s Impact On Performance

Merger and acquisition is an eternal theme of the capital market, backdoor listing is an important way of it. Backdoor listing has the advantages of low transaction costs and easy entrance to the stock market. In recent years, backdoor listing becomes a hot spot of the capital market. But exactly how many ways of backdoor listing is, and how different ways of backdoor listing will affect the performance of listed company. It is a worthy issue of further study.The article examined the impact of backdoor listing mode on the performance of backdoor listing. After reviewing the basic theories of M&A and backdoor listing, it defined the study scope of the article and the concept of backdoor listing. According to different ways of acquiring control of shell companies, backdoor listing mode can be divided into two categories: backdoor listing mode of assets and backdoor listing mode of equity. And it made a detailed illustration for the general procedure of each mode. The article took data of 82 Chinese listed companies in Shanghai and Shenzhen A-share market from 2007 to 2014 as samples, using descriptive statistical analysis to describe the characteristics of backdoor side, it draw a conclusion that backdoor listing act is influenced by the economic environment and the industry that backdoor side belongs to. It made the mode as a dummy variable in the Logistic regression model, analyzing the effect of shell company’s feathers and backdoor listing mode to the success of backdoor listing. It found that shell companies with weak development capacity and poor market performance, using the backdoor listing mode of asset would be easier to make a successful backdoor listing. Then for the successful samples, used Accounting Index Approach to measure the performance of backdoor listing. Set up backdoor listing comprehensive performance scores model by factor score method for four selected accounting indicators, by mean of the overall sample and test different ways of backdoor listing classification of samples, it found that the backdoor listing performance in short-term(one year) is significantly positive, performance of backdoor listing of assets improved significantly, but performance of backdoor listing of equity was not significant. Set up multiple linear regression to analyze factors that may affect the performance, such as transaction size of backdoor listing, the characteristics of both sides of backdoor listing and way of backdoor listing.It found a significant positive correlation between the performance of backdoor listing and backdoor listing mode, which meant that the backdoor listing mode of asset would improve the performance of backdoor listing; there was a significant positive correlation between performance of backdoor listing and company earnings, it means that the higher of shell company’s price-earnings ratio is, the higher performance of backdoor listing is; the size of business transactions and nature of shell company does not have the impact on the statistical significance test. Finally, it summarized the conclusions of full text and advised the government, regulators andboth sides of backdoor listing companies, and pointed out the limitations of the study and the prospects for further research.The innovation of this paper is linked the mode of backdoor listing to its performance,integrated use of Logistic regression model, multiple linear regression model, accounting index indicators and factor analysis, provide a reference to the future enterprise backdoor listing acts.