A Case Study Of Focus Media's Backdoor Listing Performance

In recent years,China has made remarkable achievements in promoting reform and opening up.Currently,it is facing a transitional stage of economic development.Therefore,it is necessary for some high-quality overseas listed companies to return to A-shares to activate China's capital market,thereby stimulating the transformation and development of the real economy.Compared to the IPO,backdoor listing cycle is shorter,with greater advantages.On November 2,2017,360 issued a plan to backdoor listing;on March 15,2018,the vice chairman of the SFC says the Chinese Depository Receipt(CDR)which will be launched soon.Such measures are favorable for overseas listing.The companies that have delisted overseas will return to the A-stock market.This also shows current supervisory hopes that overseas high-quality enterprises can return to Domestic market and boost China's economic development.Focus Media is the first Chinese Concept Shares listed in the media industry with a successful backdoor listing.It is also the second Chinese Concept Shares that returns from US stocks.Therefore,this article takes Focus Media backdoor listing as an entry point to study the influence of backdoor listing on the short-term stock price of listed companies and the long-term growth of the company,and studies the influence of backdoor listing on the long-term and short-term performance of the company.The empirical results show that Focus Media backdoor events have a significant impact on the short-term stock price volatility of HEDY,the impact is positive,and the positive effect in the window(t0-2,t0+ 7)is obvious.In the long run,the impact of backdoor listing on the company's growth is not obvious.In the long run,Company has obvious advantage in the industry and the impact of backdoor listing on the company's growth is affected by the fact that the Company's performance has not substantially exceeded the market expectation and limited.Finally,relevant recommendations were made to investors,companies and regulators respectively.For investors,they should rationally deal with popular concept stocks,accurately time-sharing,and focus on major corporate events.For companies,they should have specific development plans.For regulators,they should promptly promote the registration system and improve the delisting system.