Research On A-share Listing Performance Of Internet Enterprises In Reverse Merger

With the development of China's capital market,the listing system has become more and more diversified,and reverse merger has attracted more and more attention in the capital market.Compared with IPO,reverse merger has fewer threshold restrictions,looser examination,shorter listing time,lower listing cost and higher listing success rate.Therefore,reverse merger is increasingly popular.Although the new listing regulations impose stricter restrictions on reverse merger,it still becomes an option for many enterprises to enter the capital market.For the Internet industry,The financing demand is high but the profitability is lagging behind,which makes many enterprises cannot meet the requirements of the IPO.Some will choose to list abroad,but there are legal,cultural,operating environment and undervalued problems,many enterprises will choose privatization and delisting,then return to the domestic market by reverse merger.However,whether the enterprise performance level has been improved after the regression and whether the enterprise has achieved better development remains to be studied.Therefore,against this background,this paper takes qihoo 360's reverse merger with jiang nan jia jie as a case study to make a case analysis and evaluate the return performance of reverse merger to the domestic market,so as to provide reference for Internet companies to choose to go public.Based on synergy theory,agency theory and the theory of undervalued,take qihoo 360's reverse merger regression A shares as the research object,this paper researches the deep motivation and the potential risks of qihoo 360's reverse merger.From the perspectives of profitability,operational capacity,debt paying ability and development ability of the company,the financial performance of reverse merger is analyzed horizontally and vertically.The non-financial performance after reverse merger is analyzed from the aspects of website traffic index,user index and external market reaction.Finally,it can be evaluated from the enterprise as a whole whether the enterprise performance is optimized after the reverse merger.Through research and analysis,this paper finally draws the following conclusion:after reverse merger,360's short-term performance,profitability and operating conditions have been significantly improved,and the stock price and market value have also risen rapidly in the short term,but the long-term effect is not obvious.Therefore,for the Internet industry,reverse merger is a good listing choice,which can quickly improve the performance of the enterprise and win a broader development space for the enterprise.But the success of the 360's reverse merger is related to the choice of shell companies,the reverse merger plan design,the risk control and the selection of acquisition time,so when other Internet companies choose reverse mergers,they also need to comprehensively considerate of these factors and design scientifically,which can increase the likelihood of a successful listing.In addition,for the designers of the system,they also need to reflect on how to conduct listing audit and how to design the system for the Internet industry and other enterprises with great development potential but slightly weak profitability,so as to improve the system construction of China's capital market and improve the allocation efficiency of resources.