Abstract
The Initial Public Offering (IPO) is the most important way for Chinese enterprises to list, but the IPO has high threshold and the audit process is time-wasting. Furthermore, the CSRC has suspended IPO for many times, which makes the listing of enterprises more difficult. On the contrast, enterprises can save money and time by reversing merger, Shenbao An became first Chinese Reverse Merger Firm in 1993,since then RTO had increased gradually and became a significant financing means for listed enterprises . With the IPO listed enterprises as a control group, compared the CAR and BHAR between reverse merger enterprises and the IPO enterprises from 2007 to 2016, this paper researches in the short market and long market performance of the listed enterprises, and figures out the extent of the market to determine the reverse merger enterprises and financial performance by accounting index. The research shows that the short-term market performance and financial performance of RTO enterprises are worse than those of IPO enterprises, and the long-term market performance is better than that of IPO enterprises.