Research On The Motivation And Financial Performance Of Backdoor Listing Between Sino Great Wall And Victor On Ward

With the prosperity and development of the Chinese securities capital market,in order to be able to use the capital market to help companies break through the development bottleneck,many excellent companies have chosen to be listed.Since IPOs are more time-consuming and laborious,many companies wishing to go public by use the method of backdoor listing.But whether backdoor listing can really bring benefits to enterprises? We select an excellent building decoration company Sino Great Wall,which was successfully go public by backdoor listing in 2015 as a case to analyze.Firstly we analyze the motivation of the backdoor listing based on the background and the published announcements of Sino Great Wall,and then analyze the actual situation after the backdoor listing of Sino Great Wall to see whether the backdoor listing has achieved the company's original purpose.Finally,we use the Event Study Method,Financial Index Analysis Method,Efficacy Coefficient Method and Economic Value Added Analysis Method to analyze the short-term and long-term performance before and after the backdoor listing to see if the backdoor listing is really promote the development of the Sino Great Wall.Through the analysis of the motivation and the actual situation after the listing,it was found that after the backdoor listing,Sino Great Wall not only signed a strategic cooperation agreement with the bank,but also able to pass the non-public offering of A shares to broaden financing channels.In addition,in the year of 2015 and 2016,Sino Great Wall also obtained a large number of orders overseas,which bring a new high operating income to the company.All above are indicated that the backdoor listing promoted the development of the Sino Great Wall.In the aspect of performance analysis,from the perspective of short-term performance,the market shows a positive attitude for the backdoor listing of the Sino Great Wall,which is reflected in the fact that after the announcement of the backdoor listing,the cumulative excess return of the company is significantly positive.From the perspective of long-term performance,all methods shows that the performance of Sino Great Wall after the backdoor listing has a more significant improvement than before.Therefore,in the case of Sino Great Wall,the backdoor listing did achieve its established goal.However,we only choose Sino Great Wall as a single case and fails to represent the overall market conditions.The backdoor listing of Sino Great Wall has a certain degree of representation,but we cannot say that the backdoor listing will definitely promote the development of the company.In-depth tracking of the company's future development,analysis one case which failed in backdoor listing,and also introduce non-financial data to have more comprehensive appraisal of the company will be the focus of attention in the future.