The Motivation And Performance Analysis Of The Backdoor Listing For DMG Entertainment And Media Co.Ltd.

At the end of 2013,China Securities Regulatory Commission(CSRC)restarted IPO suspended for more than a year,although IPO was "released",there was few company could obtain approval,long lines of companies desired to be listed,IPO progress was slow.The requirements of IPO are currently miscellaneous in domestic.The censorship for finance and accounting of IPO is particular scrutiny,Even the most promising companies will be vetoed by the Issuance Examination Committee(IEC)if they fail to meet any of the criterions.It is unfavorable to culture media enterprises,The culture media industry is vulnerable to market influences,and the performance volatility is large.With the characteristics of "light assets",it is very difficult to IPO.The culture media industry needs to invest a lot in the early stage of the project,and the production cycle of film and television products is longer,it is essential for the enterprise to maintain a stable capital chain.A miscellaneous and long audit cycle of IPO is unaffordable for many companies.Backdoor listing became a magic weapon of the starveling demander in the market by such a condition.Culture media enterprises can establish the governance structure,incentive and restraint mechanism necessary for modern enterprises with the help of capital market forces through listing,and improve their competitiveness comprehensively.Since 2010,many culture media companies that have well performance but have been shut out of the IPO market have opted to backdoor listing to enter the capital market,and reached an explosion in 2014.This thesis selects the case that DMG Entertainment and Media Co.,Ltd.backdoor list Sichuan Gaojin Food Co.,Ltd.occurred in 2014,and precision completed performance commitment during the next three years,this is a successful case of backdoor listing which can be referenced by culture media industry.Firstly,the thesis introduces the basic information,the main business structure before backdoor and the important customers of DMG Entertainment and Media Co.,Ltd.which is the shell acquirer.We briefly explain the basic situation of the company,the number of shareholders and the basic financial position of Sichuan Gaojin Food Co.,Ltd.which is the shell company.Then we sorted out the specific process of the backdoor listing and introduced the characteristics of the case aims to make readers fully understand this case.On this basis,we analyze the motivation of the backdoor listing from the perspective of shell acquirer.Then analyze the performance of the backdoor listing,including short-term performance and long-term performance analysis,we adopt market effect analysis,financial index analysis and non-financial index analysis.Market effect analysis,ten days before and after the announcement day are selected as the window period,calculated the accumulation of excess yields of shares rose to 22% from negative during backdoor listing by the event study method,the shareholders of DMG Entertainment and Media Co.,Ltd.obtained positive wealth effect.The financial index analysis analyzes the financial performance of DMG Entertainment and Media Co.,Ltd.from the four aspects of main financial situation,profitability,operation ability and solvency after backdoor listing.Non-financial indicators,include team quality,customer satisfaction,development potential and brand influence,can help evaluate performance,make up for the defect of financial indicators and get more comprehensive evaluation of the performance of the backdoor listing.It can be concluded from the case that DMG Entertainment and Media Co.,Ltd.backdoor listing embraced a good chance that film and television assets were warmly received by the capital market,transformed successfully and won competitiveness in the industry,brought a positive effect of both short-term and long-term performance to the enterprise.With the "about to speed up the construction of a modern system of public cultural services opinion" and "guidelines for the national basic public cultural services" come out in 2015,the cultural policy dividend will be more clear and the prospect of cultural consumption is extremely broad,culture industry could usher in a golden period.Culture enterprises must establish governance structure,incentive and constraint mechanism necessary to a modern enterprise with force of capital market,enterprises should improve competitiveness,and the choice of the financing channels is considered.The purpose of this thesis is to provide reference for enterprises in the same industry.