Motivation And Performance Research Of Backdoor Listing Of Shandong Luqiao

The “13th Five-Year Plan” proposes to strength the urban and inter-city public transportation,to build a high-quality network,to promote the construction of an integrated transportation corridor,and to perfect the comprehensive transportation system.“The Belt and Road Initiative”,which has promoted the road and bridge construction industry,recommended a high quality to the transportation industry,which had pushed China to develop into a powerful transportation country.Due to the capital-intensive character,the construction industry requires large amount of funds.Non-listed companies' finance method is restricted,which affects the financing efficiency.In order to broaden the financing channels,companies can seek opportunities in the capital market.The method of listing is quite diverse,contains common IPOs and backdoors.Due to the strict auditing standards and the long review period of China's IPO system,the companies are required with high financial status,which is difficult for general enterprises to achieve.Compared with IPO,the backdoor listing is faster,safer,and easier to success.Thus,the backdoor listing has become a shortcut for companies to enter the capital market.This paper takes the case of Shandong Luqiao's successful listing by shelling Dandong chemical fiber to process analysis.Based on the previous research results,the case study method is used to analyze the specific motivation and the short-term of Shandong Luqiao's backdoor listing,also to compare the market reaction and the changes in performance before and after the listing.The study found that under the encouragement of the government and relevant departments,faced with fierce industry competition,driven by the company's strategic planning and financial pressure,Shandong Luqiao had reached its aim rapidly and efficiently through the backdoor listing.Investors and the short-term market have a positive attitude towards Shandong Luqiao's backdoor listing behavior.From the financial and non-financial perspectives,the long-term performance is evaluated using vertical and horizontal comparisons.Overall,after backdoor,the performance of Shandong Luqiao has been improved and perfected.Through the analysis of the problems in the process of this case,the experience is summarized to provide reference for other companies to list.