Cross-listing On The Impact Of The Growth

From 1980s', in the context of the economic globalization, the global financial situation has made great changes.The rapid development of national capital markets, institutions and regulations greatly promote the process of financial integration.On this basis, overseas equity financing make a rapid development and many large enterprises choose to overseas markets to seek funding. This behaviour has been strong concerned throughout the world by business and academic. Extant research posits that cross-listing enhances the company's governance capacity, improves the stock's liquidity, reduces liquidity risk premium and the financial constraints. In addition, it can improve firms'access to lower cost external financing. But so far, there is scarce evidence that improved access to external funds through cross-listing contributes to higher firm growth. In this paper, we learn from foreign scholars by Dermiguc-Kunt and Maksimovic (1998,2002) and Khurana (2008)'s paper using the financing models and regression models, and modify that adapt to the characteristics of China's information disclosure.Using a sample of 40 firms from 1993 to 2009 that are cross-listed between China and HK , we find a positive association between A+H cross-listing and subsequent externally-financed firm growth rates by non-stationary time-series research methods. Overall, our results provide new and direct evidence on the impact of cross-listing on firm growth rates. When the company successfully cross-listed and obtained low-cost equity financing, it invest to the profitable project , and then make a big growth of external financing.