Research On The Market Reaction Of The Company’s Backdoor Listing And Its Impact On Performance

As a different way of the backdoor listing is different from the IPO,which plays a more and more important role in the capital market.Because of its low cost and short queuing time,it has become popular with enterprises.However,the following problems also emerge in an endless stream.The insider trading,price manipulation has become synonymous with the backdoor event in the stock market.So whether enterprises can effectively integrate the backdoor,heathly development has become the object which investors,managers and securities regulators focus on.Therefore,it is very important to study whether the behavior of the backdoor listing can improve the performance of the enterprise and whether it is beneficial to the development of the enterprise.The pharmaceutical industry,which is also the key development object of our country,is also deeply concerned by the market.The pharmaceutical industry is the "four high" industry in the four aspects of technology,risk,investment and return,which is an important concern of all countries in international competition.As is known to all,the pharmaceutical industry in the people’s livelihood,social security and economic development have played an important role in today’s society,continuous development.With the improvement of people’s living standard and the demand for the pharmaceutical industry,the pharmaceutical industry occupy an important angle in China’s national economy.In the constantly changing medical and pharmaceutical industry,enterprises should seize the good policy environment to seek a seat in the market and ensure the long-term healthy development.In this paper,basing on the research of domestic and foreign scholars on backdoor listing events,The author chooses Jumpcan as the research object.The selected industries provide some innovation on the basis of previous scholars.This paper focuses on the impact of Jumpcan in 2013,which brought back to the two sides of the shell,and whether it has a positive effect on the enterprises after the backdoor.By using methods of event research and financial index,this paper studies thereaction and performance of the market of the borrowed shell from the following aspects.Firstly,before and after the backdoor listing event announcement,in order to analyze the market reaction of backdoor events,this paper use the method of event study to research the change of the shell company stock returns;Secondly,by using the financial index method,this article analyzes the trend of the financial performance before and after the reverse merger.By choosing financial data of 2011-2016 year of Jumpcan,the author analyses debtpaying ability,operating capacity,profitability and growth ability of Jumpcan.It has been concluded whether it is beneficial to improve the financial performance of the medicine industry and whether it is beneficial to the development of Jumpcan.Through the above research,the significance of value has been tested in theevent period.It has been found that the test interval is significant,it indicates that the backdoor incident has brought a short-term positive market reaction to the Jumpcan,and the market is optimistic about the backdoor incident.Among them,the trend change of and was the most obvious during the event period [0,7].AtT=2,it reached the maximum,about 10%;At [8,14],there is still some growth,but the trend is slowing down.At T=14,it is still around 5%,and at T=[15,30],the change trend is gradually returning to normal.By analysing the financial data of Jumpcan2011-2016 years,Jumpcan financial performance has improved in the backdoor.Based on the level,backdoor events contribute to the financial performance of enterprises,and promote stability of this trend in the industry.The behavior is conducive to the development of enterprises.Therefore,it has been concluded that if enterprises can effectively utilize scarce shell resources in the capital market,they will have a positive impact on both sides of the backdoor.At the same time,they can also optimize the allocation of resources.On the basis of this,the author stands in the perspective of both for the follow-up to the backdoor listing of enterprises and puts forward some suggestions: firstly,the backdoor should get enough information and mine suitable shell resources before backdoor;the shell company should also fully consider whether the backdoor canhealthy develop with a backdoor listing.Secondly,the borrower should strictly control the rationality of the assets value of the shell company,and avoid the excessive financing risk.The shell company should also take full account of whether the borrower is willing to add part of the asset value.At the same time,the analysis of the market reaction puts forward the confidentiality of the information,so as to avoid the adverse effect of the premature leakage.Thirdly,based on the analysis of the performance analysis,the enterprises should not abuse their advantages in the capital market and expand blindly,so they should make rational use of the capital market resources.Under the more scientific and efficient governance structure and management system,companies can prioritize and seize the valuable opportunities in business competition and resource integration to achieve optimal asset allocation.That the enterprise only steady walk every stage is the hard truth of enterprise long-term and healthy development,which further enhance the company overall competitiveness and status.This study will provide effective support and data analysis in the case of backdoor incident of the pharmaceutical enterprises and will also provide materials for the government cognizant agency in the formulation of relevant regulations.It will also provides some reference data for subsequent scholar’s research.