Research On The Motivation And Performance Of Jialin Pharmaceutical’s Backdoor Listing

In recent years,many companies have sought to be able to raise funds by publicly offering shares in the capital market.Compared with the initial listing,backdoor listing as a form of merger and acquisition has lower cost and lower difficulty.Backdoor listing is a form of merger and acquisition.Compared with the initial listing,the cost is lower and the difficulty is lower.Due to the economic development,the strong support of government policies,the increasing demand for medical products,the pharmaceutical industry has entered an era of stable development.Capital is the lifeblood of any enterprise’s development,and it is especially important for pharmaceutical companies.If pharmaceutical companies do not have continuous financing capabilities,it is difficult to make the company bigger and stronger.Since 2012,pharmaceutical companies have gradually flooded into the capital market by backdoor listing.This shows that the market strongly agrees with the behavior of capital operation through the backdoor.This article selects Beijing Jialin Pharmaceutical Co.,Ltd.(hereinafter referred to as "Jialin Pharmaceutical")to successfully backdoor Xinjiang Tianshan Wool Textile Co.,Ltd.(hereinafter referred to as "Tianshan Textile")as the research object.First,read previous scholars ’research on backdoor listings and lay the theoretical foundation of this thesis;Second,analyze the motivations of both sides of the backdoor and transaction models;Then use event research method to Jialin to evaluate the market performance of the backdoor event of the pharmaceutical industry,and use mutation series method and the entropy method to compare and evaluate the financial performance of the companies before and after the backdoor listing,and summarize the problems affecting the performance of backdoors;Then put forward suggestions to further enhance the performance of Jialin Pharmaceuticals backdoor;Finally draw the conclusion of this article.This article can provide a reference for pharmaceutical companies that need to go public through backdoors in the future,and provide practical guidance for the long-term development of pharmaceutical companies in the capital market.