The Influence Factors Of Chinese Companies Listed Overseas And Post-marketing Performance Research

This paper investigates the factors which affect domestic companies listed overseas, and the performance of companies after IPO overseas.Foreign research finds companies can get low cost funds, better mobility through listing overseas, meanwhile they need to receive more mature supervision, thus send signal to the pubic that they are excellent firms. Domestic researchers mainly focus on the companies which both lists in Hong Kong stock market and domestic stock market. This paper examines a full sample of Chinese companies which listed around the world, to get a more objective conclusion about this topic. However, we consider the profit level and GEM as important factors for firms to make decision to list abroad.I find that the company which need raise more capital or finance quickly tends to list overseas, it is consistent with foreign literature. Companies of emerging industry such as information technology are more likely to choose listing overseas. In addition, a stable market environment, a favorable time is also a important factor which influences the firms’ decision. After the establishment of the GEM, due to the high valuation, companies are more willing to list in domestic stock market.For each oversea listed company, we paired them with a similar A share firm, we examine returns from the stock price and find the difference between the oversea group and domestic group is not notable within500trading days after the IPO date, the conclusion is similar for financial result. These findings is quite different from former researches. However, when we divided the oversea listing companies into two groups, first group has net income more than10million yuan in the year before IPO, the other group has lower net income than10million yuan, we find the first group has better financial and market performance than the other group. Since in domestic stock market, regulators only allow the companies which meet its profit requirement to go public. So the findings suggest that the IPO requirement of A share, in some degree, protect investors from some less profitable, high risk companies.