Research On The Motivation And Performance Of The Cultural Industry's Backdoor Listing

In recent years,China has attached great importance to the development of the cultural industry.In the “13th Five-Year Plan”,cultural construction is a key link of the construction of the Five-in-One.In order to strengthen cooperation between the cultural industry and the financial industry,our country has issued a series of laws and regulations that encourage the development of the cultural industry,making the cultural industry gradually become a new force for economic growth.In this era,many cultural media companies have tried to use the policy dividend to achieve the company's growth.From the perspective of the industry development cycle,the cultural media industry is currently in the growth period of the industry.The industry has a large development space and the market is extremely dynamic.However,in order to achieve enterprises' development,they must first solve the funding problem.However,due to its own industry characteristics,the cultural media industry has caused some problems such as high capital demand and difficulty in financing.One of the traditional ways for companies to obtain funds is bank loans,but bank loans often require asset collateral,so there are relatively few cultural media companies that can obtain their own loans through bank loans.As a result,cultural media companies have tried to enter the capital market through IPO or asset restructuring to expand financing channels and achieve rapid expansion of the company.However,China's current approval system for enterprise IPOs has the shortcomings of long review period and low success rate.In desperation,cultural media companies began to turn to the alternative method of backdoor listing to find more possibilities for entering the capital market.The backdoor listing is the product of the current domestic listing system,which solves the problem of some enterprises' funding sources to a certain extent.Therefore,how to standardize the operation to realize the backdoor listing is also a topic of great concern to other cultural media companies.This article takes Huanrui Century as a case study.As a cultural media company that successfully backdoor listed after the introduction of the new rules,its success has certain reference significance for the latecomers.First of all,the related theories and concepts of backdoor listing are introduced,which lays a theoretical foundation for the subsequent analysis.Secondly,it analyzes the regulatory system related to backdoor listing,the financing model selection of cultural media industry,the overview of backdoor listing and the risk of backdoor listing.Then,an in-depth analysis of the motivations and solutions of the backdoor listing of the Huanrui Century Backdoor listing was conducted.Then,the short-term performance and long-term performance of the company before and after the listing of the backdoor are analyzed.The short-term performance analysis of the company through the event research method shows that the company has brought excess returns to shareholders and investors in the short-term after the listing.Through the analysis of financial data and financial indicators,it is concluded that the overall operating status of listed companies has been effectively improved,the company's solvency,operational capacity and growth capacity have increased,but the profitability indicators have not improved significantly.Through the financial performance analysis of EVA,it is concluded that although the company's economic value added has a negative value in the year of listing,its economic value added to a record high after one year.Based on the business management,the performance of Huanrui Century's backdoor listing was analyzed.It is concluded that the company's strategy and business plan have been well implemented after the listing,and the company's business operation capability has improved.Finally,the conclusions of the study were drawn and several suggestions were made.