Research On The Economic Consequences Of YTO Reverse Acquisition

In recent years,express-delivery companies have developed rapidly under the strong support of national policies,which has become an important part of China's economy.The express delivery industry belongs to a typical heavy industry.Whether it is trying to strengthen its main business and gain more market share in the existing "Red Sea" area or find another way to open up the "Blue Ocean" area,it requires a lot of financial support.Since 2016,there has been a craze for the express delivery enterprises to go public.Reverse acquisition is another way to enter the capital market besides IPO.It is also a special form of mergers and acquisitions.All four express companies listed in China have adopted this method.It is necessary to analyze in depth the motivation and economic consequences of the reverse acquisition of express delivery enterprises.This article takes YTO Express Group Co.,Ltd.as an example(hereinafter referred to as YTO)and makes an in-depth analysis of the motivation and economic consequence of its reverse acquisition.Among the several express delivery companies that are currently listed,YTO ranks first in the market share and is also the first express delivery enterprise to enter the capital market through the reverse acquisition mode,which is highly representative.Firstly,based on the synergistic effect and market forces theory,this paper expounds the process of the reverse acquisition of YTO by combining the development of the express industry.Then it describes the motivation of reverse acquisition from the background of the industry,the policy environment and the existing problems of enterprises,and the long-term strategic planning.Finally,the paper uses the method of event research and financial indexes to investigate the short-term market reaction and long-term business performance of the reverse acquisition.The study found that reverse acquisition reflect the good in the short term,produced excess returns,and long term performance is greatly improved,which confirmed that the major asset reorganization had a good economic consequence.This article studied reverse acquisition of YTO,enriches the case study of reverse mergers in the express delivery industry.At the same time,it also promotes the continuous improvement of the enterprise management mode.In addition,it has certain reference significance for other similar enterprises in choosing the mode of reverse acquisition.