Abstract

Entering the stock market to adopt indirect methods rather than official stock market procedures and evaluations, such as business transferring, stock swapping, and others, is called a backdoor listing strategy. It is required for public and private financial organizations to review the real backdoor listing cases to find out the possible issues and proper responses and to protect public wealth and the rights of the victims including small investors and public investors. This study compares three companies’ backdoor listing cases. Although a backdoor listing has the advantage of providing unlisted companies with an opportunity to enter the capital market and secure stable capital procurement in a short period of time, there is a risk of fraud after a backdoor listing due to the relaxed standards and screening compared to a regular listing.