An Empirical Study On The Performance Of Bankruptcy Reorganization Under Backdoor Mode

Market oriented reform has been implemented in China for more than 20 years,which has brought great changes to China,especially in the economic level.With the rapid development of China’s national economy,listed companies also have broader development opportunities,but the competition between the market and industries is becoming more and more intense.Such a competitive environment has caused many companies to fail to withstand the pressure of the market,and unfortunately lose out to competitors in the same industry.The company’s main business loses its competitiveness,and eventually falls into the quagmire of financial difficulties,unable to save themselves.According to my country’s initial bankruptcy law,most of these listed companies will be ruled by the court to bankrupt and liquidate,but the bankruptcy liquidation will be followed by the sacrifice of the rights and interests of creditors and other related stakeholders and the waste of social public resources.Therefore,my country promulgated a new bankruptcy law in 2007 to make up for the shortcomings of the initial bankruptcy system.Bankruptcy reorganization was introduced into the new bankruptcy law as a brand-new system.This move improved the previous disposal method that was dominated by bankruptcy and liquidation,and also brought a new dawn to listed companies on the verge of bankruptcy.There are two modes of bankruptcy reorganization:"backdoor listing" and "main business retention".Listed companies can choose according to their own circumstances.What kind of performance changes each mode will bring to the reorganized company is worthy of in-depth study and analysis.Based on the perspective of "backdoor listing" restructuring model,this paper makes an in-depth study on the performance of listed companies that use this model for bankruptcy restructuring in the market.First of all,this paper introduces and analyzes the motivation of adopting the "backdoor" restructuring mode from the perspective of restructuring investors and restructuring parties.Then,it makes an empirical analysis on the market performance after restructuring by using event analysis method.Then,it makes a comparative analysis on the financial performance of listed companies before and after bankruptcy restructuring by using comparative analysis method,and calculates the EVA value before and after restructuring,After the in-depth analysis of the performance after the use of this model,this paper gives suggestions on the problems found in the research,and finally draws a conclusion.Through the observation and analysis of the changes of the stock price cumulative excess rate of return,solvency,growth ability and other indicators before and after the "backdoor" mode of reorganization,this paper believes that the"backdoor listing" bankruptcy reorganization mode can significantly improve the performance of listed companies after the reorganization in the short term.In the long run,with the gradual disappearance of the effect of bankruptcy reorganization,the performance of the enterprise is determined by its own operating conditions and development prospects.Therefore,when the listed companies choose "backdoor"enterprises,they should fully understand their own needs and reasonably choose assets.The choice of the target company should pay attention to its sustainable operation and future growth,rather than overemphasizing the market value and valuation.At the same time,the feasibility of asset M&A should be demonstrated from every key aspect.In addition,after the reorganization,the operation focus of the listed companies adopting the "backdoor" mode will shift,and most of the original businesses will be stripped.The target injected by the "backdoor party" will become the new main business and profit growth point.Therefore,enterprises should formulate long-term operation plans.The market regulatory authorities not only need to make corresponding restrictions on the scope of the main body of the reorganization,but also need to establish and improve the relevant verification system to promote the scientific and orderly implementation of the reorganization system.