Research On The Motivation And Economic Consequences Of High Performance Commitment In Backdoor Listing ——Take Taihai Manoir Nuclear Equipment Company As An Example

With the prosperity and development of my country’s capital market,many companies want to be able to access to the capital market and utilize the strength of the capital market to achieve further development.There are currently two ways for companies to enter the capital market,IPO and backdoor listing.backdoor listing is faster and cost less.On top of that,the IPO review has become more stringent,so listed companies are more inclined to backdoor listings.Performance commitments originated in the share split reform,and after 2008 were they increasingly used in mergers and acquisitions and reorganizations.The performance commitment is aimed to protect small and medium shareholders and to enhance the quality of mergers and acquisitions.However,judging from the long-term use of performance promises,this system also has certain shortcomings.During the transaction process,both parties to the transaction may reach a tacit understanding of high performance commitments based on common interests.For a backdoor listed company,in order to stimulate the stock price after the backdoor,it is easier for the company to make a high performance commitment to send a good signal,and enhancing the capital market’s confidence.Therefore,in the backdoor listing,high performance The promise phenomenon is even more obvious.However,high performance commitments have brought greater performance pressure,and the commitment party is likely to exceed the actual profitability,making the commitment party likely to fail to complete the expected performance during the commitment period.According to the regulations of the CSRC,if the transaction constitutes a backdoor listing,the compensation should be given priority in the form of shares.In this way,the commitment party will have to pay a greater price.Moreover,in a backdoor listing,the backdoor party is not only the promise party,but also the major shareholder of the listed company,and its information and control advantages are more prominent.Therefore,the backdoor party will inevitably take some opportunistic behaviors to avoid performance compensation.This article takes Taihai Manoir Nuclear Equipment Company as an example,applying a case study method to analyze the motivation and economic consequences of high performance commitments in backdoor listings.First,according to the order of performance commitment research,backdoor listing and performance commitment research,and opportunistic behavior research,this article divides the existing literature into three sections to sort out and summarize,and put forward the value of this research.Secondly,it provides theoretical support for this article by defining related concepts and sorting out related theories.Then,a case analysis framework based on motivationbehavior-economic consequences is constructed.Next,after introducing the background of Taihai Manoir Nuclear Equipment Company,this article analyzes from four perspectives: the identification of high-performance commitments,the motivation of high-performance commitments,the opportunistic behavior of the promiser,and the economic consequences.The following conclusions: 1.Both parties to the transaction have incentives to promote high performance commitments.2.High performance promises have triggered opportunistic behaviors by the promised party.3.The high performance commitment has brought negative economic consequences to listed companies and various stakeholders.At last,based on the above research,this article offer suggestions on the phenomenon of high performance commitments in backdoor listings.The possible contribution of this paper is the following three aspects: 1.Enriching the relevant literature on performance commitments.There are not many studies in the existing literature on performance commitments in backdoor listings,and most of them are empirical studies.This article uses case studies to provide case materials and play a supplementary role.2.Combining high-performance commitments with the opportunistic behavior of the commitment party,so that the impact of performance commitments is not limited to earnings management behaviors,and make the research of performance commitments and management behaviors richer.3.This article analyzes Taihai Nuclear Equipment Company’s high performance commitments in its backdoor listing,and proposes relevant recommendations based on this,providing a reference for the regulator’s follow-up supervision of related actions.