Analysis On The Motivation And Financial Performance Of Focus Media Backdoor HEDY

In 2015,after the implementation of the restructuring plan of HEDY,focus media successfully landed on the small and medium board of Shenzhen stock exchange,becoming the first to return to A shares,this has been a great encouragement to other companies willing to return to the a-share market.Therefore,it is of academic value and practical significance to analyze the motivation and performance of the listing of HEDY holdings by focus media.On the one hand,it can supplement the merger and acquisition theory of Chinese general stock return A shares.On the other hand,it can be used as A reference for the return of A shares.This paper adopts the method of literature research and case analysis,which is based on the existing theory of backdoor listing.By introducing the case of focus media's backdoor listing,this paper further analyzes the motivation and performance of focus media's backdoor listing.This article mainly discusses from the following six aspects.Firstly,the paper reviews the process,motivation and performance of backdoor listing,and summarizes the research results of domestic and foreign scholars on the backdoor listing in recent years.In foreign countries,the research on backdoor listing is more general,and the research mainly focuses on the performance of backdoor listing.Domestic research on backdoor listing is late,but the research is targeted.Secondly,theoretical overview of the motivation and performance of backdoor listing.First of all,the concept of shell-listing,shell resource and shell company is defined;Second,determine the reasons for the backdoor listing.In this paper,there are four reasons for the backdoor listing: obtaining the continuous financing platform,the relatively simple approval procedure,increasing the popularity and obtaining the national policy support.Thirdly,to determine the performance evaluation method of backdoor listing,there are two methods: financial analysis and event research.In the end,the author introduces the theoretical basis of the motivation and performance of the backdoor listing,mainly including the following four theories: efficiency theory,synergistic effect theory,agency theory,rent-seeking theory.Thirdly,the paper introduces the case of focus media's backdoor listing.Firstly,the company profile of focus media and HEDY is introduced,including the financial situation,ownership structure and the environment of the company.Secondly,we will introduce the preparation before the listing of focus media,including how to complete the privatization,dismantle the VIE structure and transfer the equity.Finally,introduces the implementation process of focus media's backdoor listing.Fourthly,analyze the motivation of focus media to go public.First of all,this paper argues that there are four reasons for focus media to borrow the shell: share price in the United States is long underestimated,the IPO audit is strict and time-consuming,expand publicity,and the domestic policy environment is favorable.Secondly,this paper holds that the reasons for the shell are the following three aspects: adjusting the industrial structure,obtaining high-quality assets and new development direction,and avoiding the risk of delisting.Fifth,analyze the performance of focus media's backdoor listing.First of all,this paper uses the financial index analysis method to analyze the business performance changes before and after the shell,this paper concludes that most of the financial indicators have been increased due to the listing of media by focus media,profitability,operational capacity,solvency,and growth capacity have all been enhanced by the year of the backdoor listing.Secondly,this paper uses the event method to analyze the shareholders' wealth of focus media,in this paper,the analysis of the listing events of the lending shell has a significant impact on the share price of focus media,but the effect of the backdoor listing on the shareholders' wealth will gradually decrease in the long period after the backdoor listing.Sixth,the successful experience and inspiration of focus media's backdoor listing.On the one hand,this paper concludes that the following three aspects of successful experience: strict compliance with market rules,selection of appropriate shell resources and shell method,and full utilization of policy support.On the other hand,the following four aspects can be drawn from the case of focus media's backdoor listing: do the preliminary research work on shell company,consider the company's own characteristics and market conditions,weigh the benefits and costs of borrowing a shell,improve the system of the return of A shares.