Research On The Motivation And Performance Of Hengli's Backdoor Listing

Financing constraints have always been an unfavorable factor restricting the healthy development of private enterprises.Many excellent private enterprises hope to obtain long-term development funds by landing in the capital market,thus increasing the influence and profitability of enterprises to the higher level.As we all know,IPO is the main way for companies to go public,but the IPO review is very strict,and the approval process is lengthy and cumbersome.That resulting in many excellent private enterprises failing to meet the IPO requirements.In this way,the backdoor listing has been receiving much attention in the capital market.The delay in the registration system has ignited the flame of the shellfish,and many companies have blindly followed the trend.However,listing on the basis of different motivations will have different effects on the performance of the company,which will be related to the success or failure of the backdoor listing.This paper selects the case of chemical fiber enterprises to go back to the market,and uses Hengli's backdoor *ST Daxiangsu as the research object.It is hoped that through the analysis of the motivation and performance to analysis the trading behavior,the impact of Hengli's backdoor listing on the company's performance will be studied.And further explore the inherent logic between backdoor listing and company performance.This will help to explore the theory and performance evaluation methods suitable for the private companies' backdoor listing,and provide decision-making and action basis for enterprises,government departments,legislation and regulators of both sides of the backdoor listing.Based on the theory of principal-agent theory,efficiency theory,market power theory and transaction cost theory,this paper takes Hengli shares backdoor listing as the research object.This paper analyzes the process of the listing of Hengli shares,the change of shareholding structure and the motivation of backdoor listing,analyze the motivation of the listing of Hengli's backdoors;In the performance analysis part,firstly analyze the short-term market response by using the event research method;Secondly analyze the investment and financing situation after the backdoor listing;Finally,use the DuPont analysis method and the economic value added analysis the financial performance of Hengli shares before and after listing.The main conclusions of this paper are as follows:(1)Due to the suspension of the IPO and the failure to meet the requirements of the IPO,Hengli shares are listed on the backdoor.On the one hand,the borrowing motivation of Hengli is based on the goal of strategic integration.On the other hand,the scale effect of the enterprise.(2)Using the event research method to analyze the market reaction of Hengli,and found that its excess return rate and cumulative excess return rate indicators showed large fluctuations,which did not bring wealth effects to shareholders.(3)Through the analysis of investment and financing after the listing of the backdoor,it is found that the financing cost has decreased.Judging from the capital investment plan,it was found that Hengli shares invested a large amount of funds in the refining and chemical integration project after the listing,which also confirmed that Hengli shares were listed on the basis of the strategic integration.(4)Using DuPont analysis method to compare the financial performance before and after the listing of the backdoor,it is found that the backdoor listing has a positive impact on the net assets return rate,net sales rate,total asset turnover rate and equity multiplier of Hengli.Using economic value added analysis to compare and analyze the economic value added before and after the backdoor,it is found that the economic value added after the backdoor has been significantly improved,which confirms the positive impact of backdoor listing on financial performance.