The Research on Market Reaction and Performance of Chinese Enterprises' Backdoor Listing

Yu SONG, Cheng-li NI

Abstract


With the transformation and upgrading of China's economy, the demand of financing is , increasing, however, the current financial market and the banking system have some limitations. Corporate financing activities are subject to many constraints, so many companies turn to the lower cost, shorter cycle of backdoor listing for financing. In this context, this paper analyses the effect of China's enterprises backdoor listing through the event research method and the matching sample T-test analysis. The study finds that backdoor behavior will cause a obvious market reaction, but after a period of time, the market will reverse the adjustment of the overreaction. At the same time, backdoor listing can improve business performance, but the long-term performance will show a downward trend.

Keywords


Backdoor listing, Financing, Market response, Business performance


DOI
10.12783/dtssehs/eiem2017/16082

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