What is it about?
This study backdoor listing to empirically analyze whether there are differences in terms of financial stability to the company and the target company listed on the KOSDAQ market entry way to the general public. Backdoor listing is meant that the privately held company that is publicly traded public company without going through the normal process of public review, including through public companies and bonds.
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Why is it important?
Backdoor listing is used as a way to increase the efficiency of management by a private company is recovering quickly funds to shorten the listing period with growth potential, backdoor listing target listed companies to exit the market that can occur due to deterioration of business because it can be used as opportunity to avoid attracting attention recently.
Perspectives
Unlisted companies seeking to circumvent the market are likely to find listed companies with low market cap. Unlisted companies are often unable to raise profits in a short period of time, so it is more likely to raise funds by issuing capital increases or bonds rather than in their main business activities.
Professor Bumjin Park
Soonchunhyang University
Read the Original
This page is a summary of: Backdoor Listing and Financial Stability, Korean Jouranl of Business Administration, November 2016, The Korean Academic Association of Business Administration,
DOI: 10.18032/kaaba.2016.29.11.1693.
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