Case Study On Performance Of Focus Media's Reverse Merger

Enterprises can gain many advantages through listing,such as expanding financing channels,expanding the scale of enterprises,shaping a good image in the market,etc.Therefore,in recent years,domestic enterprises applying for reverse mergers have increased year by year.Compared with IPO,reverse mergers approval time is short,the cost is low,the audit conditions are relatively less demanding,and the chances of success are greater.In December 2015,the key steps of Focus Media's reverse mergers were completed.Focus Media was listed on the Shenzhen Stock Exchange.The stock code of the listed company remained unchanged and the stock name changed.This meant that Focus Media could be in the domestic capital market.Carry out various transactions such as investment and fundraising.The reason why this article chooses Focus Media as a case company is that it can provide successful materials for domestic academic research on reverse mergers.Second,it has some reference for companies that intend to go public through the backdoor,and formulates policies for the government and relevant departments.Supervision can provide a reference.The paper first introduces the current development and market background of domestic reverse mergers,analyzes the theoretical significance and practical significance of reverse mergers,and cites the research results of domestic and foreign academics on reverse mergers.Secondly,it expounds the related concepts and theoretical foundations of enterprise reverse mergers,shell resources and shell companies,and the performance research methods of reverse mergers.Then in the case analysis part of this article,the introduction of the backdoors,followed by the respective drivers of the backdoor,and the plan and process of the reverse mergers.In the performance research part of the reverse mergers,the event research method is used to analyze the short-term market performance of Focus Media's reverse mergers,and the conclusion that the event has a positive impact on the stock price;the financial index analysis method to obtain the reverse mergers makes the four capabilities of Focus Media have Different levels of improvement;the conclusion that the reverse mergers of the EVA evaluation system has improved the corporate value and operating performance of Focus Media.Finally,based on the research summary of the case,summarize the revelation and provide some reference for other non-listed companies that intend to choose reverse mergers.