| Due to the approval-based IPO system of China’s Main-Board Market,the cost incurred by the system has made it more difficult for companies in China to go public through IPO.As policies of the China Securities Regulatory Commission tighten,companies with an urgent need to go listing may be obliged to choose the backdoor listing option.Meanwhile,the demand of unlisted companies for listing leads to the pursuit of “Shell Resources” in the secondary market,and investors also increase their expectations for potential reverse merger transactions of listed companies,resulting in the Shell Values in China’s capital market.Furthermore,the launch of the Sci-Tech Innovation Board(STAR)on the SSE in June 2019 kicked off the reform of the IPO system in China’s capital market.It can be foreseen that in the future,as the reform of China’s capital markets continues to progress,the Shell Values generated by the approval-based IPO system will gradually become history with the full implementation of the registration-based IPO system.Because of Shell Values,the listed companies are able to take advantage of this potential value without having to engage in actual production and operation.To a certain extent,the choice of financial policies of listed companies can reflect the production and operation of them.As a result of the institutional background,the financial policies of China’s Mainboard-listed companies may be affected by the Shell Values.This paper takes listed companies on the China’s Main-Board Market from2010 to 2020 as the object and investigates the relationship between Shell Values and financial policies through empirical analysis.Firstly,this paper obtains prediction models for Shell Values and the probability of Being a Shell from the actual cases of backdoor listing in China’s Main-Board Market.Subsequently,by using the prediction models for prediction,this paper calculates the Shell Value Ratios of listed companies on China’s Main-Board Market.Furthermore,this paper examines the relationship between the Shell Value Ratios and the financial policies of China’s Mainboard-listed companies.Specifically,it analyses the relationship between the Shell Value Ratios and the two financial policies of investment and financing policies of China’s Mainboard-listed companies respectively.Moreover,considering the new changes that the launch of the STAR may bring to the relationship between Shell Value Ratios and financial policies of China’s Mainboard-listed companies,this paper empirically analyses the changes in this relationship before and after the launch of the STAR.Afterwards,considering the possible influence of the different ownership properties,the listed companies in the sample period are divided into state-owned companies and nonstate-owned companies,and the influence of the Shell Value Ratios on financial policies are analyzed respectively.The main conclusions of this paper are as follows:(1)The financial policy choices of listed companies on China’s Main-Board Market are influenced by the Shell Value Ratios.The financial policies of China’s Mainboard-listed companies with higher Shell Value Ratio are more negative.(2)Comparing with the period before the launch of the STAR,the listed companies on China’s Main-Board Market are no longer significantly affected by the Shell Value Ratios when formulating financial policies after the launch of the STAR.(3)Among China’s Mainboard-listed companies,state-owned companies are more significantly affected by the Shell Value Ratios in the choice of financial policies than non-state-owned companies.The financial policies of state-owned listed companies with higher Shell Value Ratio are more negative.However,this effect is not significant for non-state-owned companies. |
