Analysis Of The Motivation And Performance Of Qihoo 360's Backdoor Listing

Qihoo 360 was listed on the New York Stock Exchange on March 30,2011.It was privatized in July 2016 and announced its delisting.It would return to the A-share market in the second half of 2017.Its return would not only bring new management concepts and operating models to China's domestic Internet companies,but also had a positive impact on the capital market.As the company with the highest market value in the past few years,its success depends not only on the careful preparation and resource integration before and after the backdoor,but also on the domestic policy inclination and financial support for the Internet industry.Based on the case of Qihoo 360 backdoor listing,this paper first expounds the research ideas and methods of this paper through the analysis of the related theory of backdoor listing,and then summarizes the definition,policies and processes of backdoor listing,and contrasts with IPO in advantages and disadvantages.In the case part,the basic company situation of Qihoo 360 and Jiangnan Jiajie and the status of the industry environment are introduced respectively.It is concluded that the latter sells shells mainly because of the difficulties of the company's operation and the development of the industry.The motivations for choosing a backdoor listing include:limited development in the United States and a good domestic Internet situation.In the performance analysis part,firstly,the stock market's stock return rate reflects the impact of the backdoor listing in the short-term and long-term,the study found that in the short-term,the backdoor listing has a huge positive effect on the market,the cumulative excess return rate is up to 155.711%;Then through the financial performance method,from the three aspects of profitability,solvency,and operational capability,we compare the financial performance of Qihoo 360.The research shows that the backdoor listing has a positive impact on the company's financial performance.There has been a clear improvement.Finally,it summarizes the target cases from the three aspects of motivation,performance and experience.On the basis of the conclusions,it proposes policy recommendations to relevant enterprises from two aspects of its own financial status and payment methods,and hopes that regulators can regulate the financial market and provide enterprises with More financing channels.