Research On The Motivation And Financial Performance Of Giant Network's Backdoor Listing

In recent years,many companies choose to enter the stock market by backdoor listing,making the comparison between the advantages and disadvantages of backdoor listing and IPO become the focus of discussion again.With the new trial Commission,the regulatory authorities are more stringent on the IPO verification,and the rate of the meeting is repeated and low.As an important supplement to the listed companies outside the IPO,the backdoor listing has gained a lot of favor from the listed companies.Compared to IPO,the backdoor listing has the advantages of short listing time,lower financial standard and relatively simple examination and approval procedure.At present,the successful backdoor listing of companies including the HEILANHOME backdoor GANAL SCIENTIFIC CO,SF EXPRESS backdoor DINGTAI and so on,but the debt risk and the laws and regulations of shell resources is not perfect and other reasons also led to some backdoor failure cases.Therefore,it is worthwhile to discuss the reasons for the choice of the shell of the enterprise and the impact on the financial performance after the shell.In recent years,countries continue to promote the adjustment of industrial structure,launched the "public entrepreneurship,innovation","Internet plus"development strategy,provide a good macro environment for the development of the Internet business.At the same time,along with the popularity of mobile phone and other electronic devices,customers crowd web games and mobile phone client increases rapidly,aroused fierce competition in the gaming enterprise but also for the development of enterprises ushered in a new opportunity to enterprise in the fierce competition in the talent shows itself must walk on the way of financing.This article selects the Giant Interactive Group Inc,which used to be the first private enterprise to land in the United States securities market,for the case study.Giant Interactive Group Inc is a Internet Co,which is the main business is games.In 2014,it was delisted through privatization,and sought for listing opportunities in China.In October 2015,it announced a backdoor announcement and completed the listing in 2016.In this process,the Giant Interactive Group Inc has been seriously underestimated from its previous market value,and has gained considerable business income and profits through privatization,grasping the shareholding and completing the strategic reform of the enterprise,and then going back to the market.The twists and turns of the route of the Giant Interactive Group Incand the objective results obtained after the listing are the problems worthy of further discussion.Therefore,on the one hand,according to the industry situation and development status of the Giant Interactive Group Inc,this paper analyzes and chooses the motives of backdoor listing.On the other hand,we use Event Study,Accounting Index and EVA Analysis to analyze the growth of financial performance brought by backdoor listing to the company.Finally,through the case of giant network backdoor listing,we can get the economic benefits brought by the event of backdoor listing,so as to provide some references for other enterprises to choose the future listing.