Study On Follow-up Financial Performance Of Chinese Enterprises After Backdoor Listing

The backdoor listing has been a relatively popular and cutting-edge topic for the investors who invested in the securities market.Under the impact of the market and legal environment,the transaction model of backdoor listing has become relatively complex.Firstly,as for the different stakeholders,the interest exchange is constructed based on the listed assets and control right.Secondly,the backdoor listing has not been independently regulated by Chinese relevant laws and regulations,and the requirements for backdoor listing only obey the general rules of reorganization.At present,the popularity of backdoor listing is even increasing,the market of shell company is jumbly and the price of shell company increases from 2 billion to 5 billion gradually,or even higher.Nevertheless,as for the companies who are urgently to be listed and if there is no chance to IPO,the companies will still choose the backdoor listing.The domestic and foreign scholars are keen on the subject that if the backdoor listing can improve the business situation of enterprises.However,the research objects of most scholars are currently limited to a single company,and they try to explain the impact of backdoor listing on business performance by comparing the operating situation of a single company before and after backdoor listing,thus the conclusion is not universal.The paper refers to the research systems of domestic and foreign scholars.Firstly,through China Stock Market & Accounting Research(CSMAR),the report data of all backdoor listed companies in 2012 is inquired,the financial indicators used to evaluate performance are selected.And then by utilizing the report data,the financial performance indicators of the year before backdoor listing(2011),the current year(2012)and the next three years(2013,2014,2015)of the sample companies are calculated.Then,based on the principal component analysis method to calculate the comprehensive performance score,it is found that the financial performance of the sample companies coming into market by backdoor listing does not change significantly by comparing the current year(2012)with the previous year(2011).However,in the three consecutive years(2013,2014,and 2015)after backdoor listing,it is significantly higher than that of the year of backdoor listing(2012)and the previous year(2011).Therefore,the backdoor listing in China's capital market has a great advantage,which can improve the business situation and increase business performance.This paper provides a reliable theoretical basis for the two transaction parties choosing backdoor listing,and has played a guiding role in the actual transaction,with the aim of making the parties to obtain the greatest benefit.