The Research Of Evaluation Of Shell Resource Based On Real Option Method

With the continuous development of a company,the demand for fund-raising will become much more stronger,so when its fund-raising channels are bottlenecked,it will seek to go to the securities market to open new fund-raising channels to meet its development funding needs.Generally,there are two methods for a company to enter the securities market.One is Initial Public Offering,which is also called IPO,and the other is backdoor listing.The proposed listing company obtains control of the listed company that has become a shell company through cash purchases or asset replacement,and injects the assets of the proposed listing company to complete the purpose of indirect listing.In recent years,as the IPO in China’s securities market has not yet fully adopted the registration system,but approval system,which has led to excessively long IPO processes and too many queuing companies,and the time and capital costs of IPOs have become higher and higher.Therefore,many companies have turned to backdoor listing,and shell companies as shell resources have also been favored by many companies.At the same time,China’s securities market regulators continue to issue backdoor listing laws and regulations to prevent overvaluation of shell resources.Therefore,how to properly evaluate shell resources has become an important part of the economic behavior of backdoor listing.This article will study the definition of shell resources,the motivation for backdoor listing,the value connotation and influence factors of shell resources,and the evaluation methods of shell resources by literature analysis,comparative analysis and case analysis,and find that shell resources similar to real options,but traditional assessment methods cannot reflect this similarity.Then this article explore the feasibility of using real options to evaluate the value of shell resources.This article uses Yunda’s backdoor listing as a case study to analyze the selection and calculation of parameters such as the current price of the underlying asset,the exercise price of the option,and the volatility of the underlying asset under the real option method framework.The current price of the underlying asset is mainly divided into two parts: the increase in value of funds invested in new projects and the value of tax benefits obtained through relevant policies after listing.The exercise price of the option consists of two parts: direct cost and equity dilution cost.The the value of the shell resource in the backdoor listing case is obtained..Finally,this article summarizes that using the real option method to evaluate the value of shell resources can better reflect the options characteristics of shell resources,such as selectivity,delay,etc.,and the method of analyzing and measuring the value of shell resources has certain feasibility in practice.Hope this article can provide a certain reference for the academia and practical operation.