A Case Study Of Performance Betting Under The Background Of Backdoor Listing Of Hong Gao Design

IPO or backdoor? With the acceleration of China's mergers and acquisitions,more and more listed companies are faced with such a dilemma.IPO is the main channel for Chinese companies to list in the past few years.Companies that listed throughout IPO generally have strong economic strength and are larger than small and medium-sized enterprises.However,due to the narrow market access and long time to market,backdoor listing has become an important way to achieve listing outside the IPO.The actual operation of the backdoor listing involves multiple links and many investors.Whether the real performance of the enterprise after the listing is raised,whether the injection of assets to maximize the benefits,and whether the performance composition is true or not has gradually become a hot spot for supervision.In order to ensure the fairness of the reorganization transaction,avoid the phenomenon of “high buy and low sell”,and ensure the interests of small and medium shareholders,the “Measures for the Administration of Major Asset Restructuring of Listed Companies” promulgated by the China Securities Regulatory Commission in 2008 forced the listed company to complete the implementation of major asset restructuring.Compensation for profit forecasting is also referred to in this article as the “performance commitment” system.However,the number of companies that have signed performance-togambling terms in the current M&A market is high.This is especially true for backdoor listings in mergers and acquisitions.This paper takes the case of a large amount of performance on the backdoor case of the gambling – Hong Gao Design backdoor Dong Guang Microelectronics as the research object,and found that it chose the latter in the game of IPO and backdoor.In the game of a shell and under the backdoor listings "confident" to set up a high performance bet against,and two years after its commitment period performance standards,financial performance and market reaction is negative.The performance under high pressure and performance whitewash,and show strong buying motives and certified public accountants audit to change behavior.Finally,based on the above analysis,this paper summarizes the case enlightenment of different market economy subjects.The research results of this paper expand the research perspective of mergers and acquisitions,and have reference significance for the choice and performance of the company's listing methods in the rational and efficient use of gambling in mergers and acquisitions transactions.The main conclusions of this paper are as follows: First,Hong Gao Design has selfselection behavior in the way of listing.Second,high performance bets make Hong Gao Design obtain "high valuation" and "high premium";Thirdly,high performance gambling has brought adverse economic consequences to the operation and development of Hong Gao Design.Fourthly,the selection of listing method and the deviation of performance betting application are the two major reasons for the failure of honggao design transaction.