Study On Motivation And Effect Of Backdoor Listing Of Vocational Education And Training Institutions

In China,if enterprises want to successfully obtain the listing qualification,there are two ways for them to choose: IPO and backdoor listing.The latter is becoming increasingly popular in capital markets because of its relative simplicity.However,due to the negative effects of stock price manipulation,the influence of stock price manipulation on the operation of enterprises is gradually becoming the focus of the parties concerned.Therefore,it is quite important to study whether the backdoor listing behavior can have a positive effect on the later operation of the enterprise and whether it is conducive to the development of the enterprise.Nowadays,the development prospect of China's education and training institution industry presents a promising trend.In this context,many educational and training institutions have passed or plan to be listed through backdoor.In addition to making up for the capital gap,they can also achieve the effect of reasonable tax avoidance and further enhance the strength of enterprises.When deciding on the case company,this paper chooses zhonggong education,a representative enterprise in the education industry,to focus on the analysis of the motivation for zhonggong education to backdoor yaxia automobile's listing,as well as the impact of the event on zhonggong education,and whether the backdoor has produced a positive effect.After an in-depth analysis of the backdoor listing of yaxia automobile in zhonggong education,this paper comes to the following conclusion: the reason why zhonggong education chooses backdoor listing is that zhonggong education is in the critical stage of rapid development and in urgent need of financial support,while IPO has great limitations.Backdoor listing can enrich the financing channels and obtain a wide range of positive publicity effect.In addition,since the business of zhonggong education has radiated most provinces and cities in China,listing is also conducive to making full use of the policy support of local governments.In the research on the market effect of backdoor listing of zhonggong education,EVA performance evaluation method and financial index method were selected.First,the EVA index can better represent the real profits of the enterprise,so the short-term effect of this case can be studied.Second,the financial data are used to describe the degree of changes in the performance of zhonggong education before and after the transaction,and a comparative analysis is made to find out whether backdoor listing has a positive impact on the financial performance and long-term development of zhonggong education.At the same time,the non-financial effect of the case is supplemented to get closer to the real situation.Based on the analysis of this case,the author has the following Suggestions for other would-be shell companies: first,the appropriate shell companies in the market should be screened to select the appropriate shell resources before the backdoor.Secondly,in the design of backdoor listing and major asset replacement trading scheme,we should fully consider the possibility of avoiding the formation of goodwill,and avoid the later stage of enterprise financial risk.Finally,based on the analysis of the successful backdoor listed enterprises,the first thing to do after listing is not to expand the scale,but to absorb the advanced model of the same industry,large enterprises of the same scale,and play it steadily,which is a long-term efficient operation of the correct model of an enterprise.The research of this paper will fill the gap of backdoor cases in the education industry and contribute to the improvement of regulations for the supervision institutions.