Research On The Path And Performance Of Trina Solar’s Privatization And Return To Science And Technology Innovation Board

In the early days,some photovoltaic companies in China went public in the United States in pursuit of better financing and development opportunities.However,in recent years,Chinese concept stocks have been heavily suppressed in the US stock market,making it difficult to achieve the overseas financing vision at first.Since 2010,China’s photovoltaic industry has been continuously growing,and with the introduction of the dual carbon policy in 2020,the industry has also entered a new stage of high-quality development.Against the backdrop of foreign threats and domestic improvement,a large number of photovoltaic concept stocks are ready to return to China.Therefore,this article takes Trina Solar,which returns to the Science and Technology Innovation Board in the form of an initial public offering(IPO),as a case study.Based on life cycle theory,information asymmetry theory,undervaluation theory,and market timing theory,it explores the path and performance of the company’s return to the Science and Technology Innovation Board,with the aim of providing reference for the return path selection and future operation of peer concept stocks or other concept stocks.At the same time,it is also of great significance for improving China’s regulatory mechanism.First of all,the overview of the enterprise is combed.This paper mainly reviews the process of Trina Solar’s listing in the United States,analyzes the motivation of regression.Secondly,Trina light regression path is studied.This paper introduces the return path of China Concept stock and the return path of “Privatization and Delisting--Dismantling Red-chip Structures--IPO” chosen by Trina Solar.Then,this paper studies the change of its performance after regression from the perspective of market response and financial performance.Among them,the short-term market reaction is analyzed by using stock price,price-earnings ratio and market value,and the holding period abnormal return BHAR is calculated by using event study method to analyze the long-term market reaction.Based on the financial index and factor analysis method,the financial performance of Trina Solar after regression is evaluated,and the management of Trina Solar is proposed.This paper also further verifies the performance after regression based on the perspective of regression path,so as to test the universality and accuracy of performance results,at the same time,provide reference for the concept of pseudo-regression.Based on the case study,this paper finally draws the following conclusions:(1)Trina Solar privatization regression path is the result of the joint action of the enterprise’s environment,its own ability and other factors.(2)Trina Solar has a positive market reaction at the initial stage of regression.But most investors today are more rational and focused on the long term.(3)The regression of Trina Solar improved the financial performance of the enterprise,but the enthusiasm was weak in the later period.(4)China concept stocks using similar regression paths with Trina Light have positive effects in the short term after regression.However,China concept stocks can not rely on the halo of American stocks once and for all,should always pay attention to management,maintain core competitiveness.