The Research On Risk Control Of Corporate Backdoor Listing

The development of modern enterprises to a certain extent will affect the expansion of business scale because of the single financing channel.The most effective way to expand the financing channel is to enter the capital market for equity financing.At present,There are only two ways to go public: initial public offering(IPO)and backdoor listing.As China’s capital market is still in the development stage,the relevant system is also constantly improving,enterprises want to go through the IPO not only through strict qualification examination,but also need to pay a huge time cost.Companies may miss the golden age of enterprise development while waiting for IPO approval and listing.Therefore,many companies turn to buy the shell of listed companies after the IPO channel fails,and complete the listing goal through backdoor.Although backdoor listing has obvious advantages,but the shell resource market is chaotic,and it is more difficult to find high-quality shell.At the same time,the supervision of backdoor listing has become more stringent.The complexity of operation and the strictness of supervision lead to the increase of risk that enterprises want to go public through backdoor.Risk is irreversible,in order to improve the success rate of backdoor listing,backdoor companies need to control all the risks in the process of backdoor listing.Combined with the research on backdoor listing both here and abroad,it mainly focuses on the reasons for choosing this listing method and the performance of enterprises after listing.Financial risk is the focus of most scholars on the risk of backdoor listing,but there is a lack of systematic case studies on the overall risk of backdoor listing.Therefore,this paper takes the successful borrowing of Yaxia Automobile by Zhonggong Education as an example,and it is of great significance to analyze the risks and control measures faced by Zhonggong Education in the process of borrowing Yaxia Automobile as the first stock of education and training successfully landing in A-share market.This paper analyzes the risks faced by China public education in this transaction and the risk control measures taken by China public education from the perspective of backdoor side,and evaluates the effect of risk control.The thesis mainly uses three research methods: literature studies,case studies and comparative research.The first chapter,Introduction,firstly expounds the research background and significance of the paper.Then using the literature research method to analyze the previous scholars’ research status of risk management and control of backdoor listing,and make a comprehensive review of the current research status.Finally,the research ideas,research methods,innovations and shortcomings of the paper are put forward..The second chapter defines the related concepts first,and then expounds the related basic theories used in the paper.The third chapter is the introduction of the case,including the situation of the two companies,the transaction motivation and the transaction process.In the fourth chapter,based on the case,the transaction process is divided into preparation stage,implementation stage and integration stage,and the risks faced in each stage and the relevant risk control measures are analyzed in detail.Finally,based on the comparative analysis of financial and non-financial indicators before and after the backdoor listing of China public education,this paper evaluates the financing and sustainable operation ability of China public education after the backdoor listing,evaluates the effectiveness of risk management and control in the transaction of China public education,and summarizes the experience of risk management and control in the backdoor listing of enterprises.The fifth chapter is the summary and prospect.Through the research,the paper gets the following enlightenment: the risks faced by backdoor listing are diverse.Before backdoor listing,the quality of shell resources should be fully investigated,reliable professional intermediaries should be selected,and the backdoor scheme should be designed to match it.After backdoor listing,we should also keep a sense of hardship,and the enterprise development strategy should closely follow the national development strategy.