| dc.description.abstract | This paper mainly examines the relationship between the financial distress and corporate governance variables index of Taiwan’s backdoor- listed companies from 1994 to 2012 on backdoor-listing year. We hope that the results will keep investors from the bad backdoor-listed companies earlier. The data on the variables in this paper derive from the TEJ; the t-test and the Logistic regression are used. In this paper, the t-test is from pre-listing year 2 to post-listing year 2.
In t-test, financial variables are also tested besides corporate governance variables index. The results show that the average ROA, current ratio, Board Pledged%, and Excess Control of the backdoor-listed companies are all poorer, and the average ROA is significant on pre-listing year 1, and the current ratio and the Excess Control are all significant, while the Board Pledged% had been significant since post-listing year 1; the average Net Income% , Accounts Receivables Turnover, and Managers’ Sharehold% had been poorer since pre-listing year 1, and the Net Income% is significant from backdoor-listing year to post-listing year 2, and the Accounts Receivables Turnover is significant on post-listing year 1 and post-listing year 2; the average Total Asset Turnover is poorer except on backdoor-listing year; the average Board% is poorer except on backdoor-listing year and post-listing year 2 and it is significant on pre-listing year 1; the average Shareholding ratio of the largest outside shareholder is poorer on pre-listing year 1 and backdoor-listing year than IPO companies.
In addition, the empirical results show that when Managers’ Sharehold% or Excess Control of the backdoor-listed companies on backdoor-listing year is high, the possibility of financial distress is significant low. | en_US |