Research On The Financial Effect Of Focus Media Returning By Back-door Listing

In November 16,2015,HEDY HOLDING CO.,LTD(hereinafter referred to as "HEDY")announced that its major assets and issue shares and pay cash to buy assets and raise matching funds and related transactions have allowed by the China Securities Regulatory Commission mergers and acquisitions of listed companies audit committee with conditions.The major asset reorganization in HEDY announcement means that the Focus Media Information Technology Co.,Ltd.(hereinafter referred to as the "Focus Media" or "Focus")proposed to be listed through brought by the HEDY,its also means that the Focus Media successfully landed A shares of the capital market after its withdrawal from the U.S.stock market.After the announcement of backdoor matters,HEDY stock(stock abbreviation: HEDY,stock code: 002027)continuous trading,the total market value of ?199126830673.24 also ushered in the highest value in the completion of the transfer of assets of Focus Media in December 22,2015,close to 200 billion.However,on the day before its delisting,Focus Media to close at $27.42,the market value of about $3 billion 621 million,equivalent to about RMB 16 billion 822 million.Obviously,the return makes its market value a big jump,also stimulates the enthusiasm of other enterprises in the stock market return.What is the reason for the NASDAQ China media to give up the identity of the first foreign capital stocks return? How about its operating results after its return? Whether it can afford the expectations of domestic investors? For this phenomenon,what should the main body of market regulation,the Focus itself and investors to do? Aiming at the above problems,the author explores the reasons for its return and focus on the analysis of the financial effects of the return behavior of its privatization and delisting starts from the return of Focus Media,in order to promote China's sustained and healthy development of the capitalist market contribution.In this paper,we study the financial effects of Focus Media's backdoor regression behavior.Using financial index method and event study method to study the financial changes before and after the backdoor return and to study the short-term market reaction under the background of collective return.Come to conclusion: on the one hand,the backdoor return behavior enhances the Focus Media's shareholder wealth and affects its solvency and overall assets operation ability,but its strong profitability is not affected;on the other hand,the Focus Media's backdoor regression event triggered a strong demand in the short term,significantly enhance the wealth of shareholders in “shell” company.Finally,the paper puts forward the corresponding suggestions in the case of the main body of the case,the enterprises soon come back and the supervision.The article consists of four parts: the first part is the introduction,mainly introduces the research background and significance,research status,research contents and methods,and the innovation and shortcomings of this paper.The second part is the Focus Media backdoor return survey and regression motivation analysis.The third part uses the financial index analysis method to analyze the financial effect before and after the Focus Media before delisting and the backdoor return,market reaction using event study method on the focus media backdoor incident analysis;the fourth part is the conclusion and suggestions.