Research On Financial Effect Of Stock-for-stock Merger Between Junshi Biomedical And Zhonghe Pharmaceutical

With the development of Chinese capital market,merger has become a shortcut for the rapid development of enterprises.As an important way of merger,stock-for-stock merger have received more and more attention and application.Enterprises can acquire important production factors in a short period of time,expand production scale,produce synergistic effects and enhance competitiveness through stock-for-stock merger,and even realize the purpose of backdoor listing and curve listing,save the capital cost required for listing and accelerate the development process of enterprises.In our country's capital market,the stock-for-stock merger is more widely used in the main board listed enterprises.In previous studies,the main board listed enterprises have also been taken as the main research object.However,with the development of the New Tertiary Board Market,the stock-for-stock merger is also gradually applied to the New Tertiary Board Market.The case of Shanghai Junshi Biomedical Technology Co.,Ltd.absorb Shanghai Zhonghe Pharmaceutical Technology Co.,Ltd.is the first case of the New Tertiary Board Market.This paper takes the case of Junshi Biomedical stock-exchange merger and Zhonghe Pharmaceutical as the research object to analyze the financial effect of stock-exchange merger and absorption.First,it introduces some basic theories such as the core concepts related to the stock-for-stock merger,merger motivation theory,and evaluation methods of financial effects.Secondly,starting from the macro background of the bio-pharmaceutical industry in which the merging parties are located,the basic situation of the merger of Junshi Biomedical and the merged parties,the motivation of the merger and the results of the merger are analyzed.Thirdly,the financial effect of Junshi Biomedical stock-for-stock absorption merger was studied in depth,mainly from three aspects of ownership structure,market response and financial indicators by using the method of event study and financial index analysis.Finally,some conclusions and enlightenment are drawn through case studies.Through studying,this article draws the following conclusions: after the merger,Junshi Biomedical shareholder control right has not been impacted,and the ownership structure is more reasonable;The cumulative excess return rate of Junshi Biomedical is higher and the stock value is increased after the merger.After the merger,JunshiBiomedical debt paying ability remains strong,with considerable development prospects but poor profitability and operation ability.Summing up the cases,we can draw the following enlightenment: when making the decision of merger,enterprises should reasonably choose the way of merger,effectively determine the motivation of merger,and pay attention to analyzing the financial effects of share exchange and absorption and merger.The research in this article has certain demonstration significance for the future merger of New Tertiary Board enterprises.