Under The Perspective Of Investor Protection Of Cross-listing And Dividend Policy Research

In recent years,overseas cross-listing has become a focal point in the internatio-nal financial market and a major research theme in the financial sector.Many scholarsresearch on cross-listing from different angles,and formation of a representativeinvestor cognitive hypothesis,such as market segmentation hypothesis,liquidtyhypothesis and investor protection hypothesis.With the growing number of companieslisted overseas,investor protection issues are increasingly subject to the attention ofscholars at home and abroad.In the previous literature,most of the scholars throughcomparison the legal system between overseas listing and the home country of listedcompanies.Research from the economic aspect is relatively less,this topic mainlyaimed at those A+H share companies which cross-listing in Hong Kong,starting fromthe listed companys dividend poliy,combined with the differences of legal systemsbetween domestic capital market and Hong Kong capital market, do in-depth researchon investor protection.This topic defined cross-listing and small investors first,and reviewe basictheories such as dividend theory and cross-listing representation hypothesis,analysethe reason of cross-listing,compare the governance mechanism between two listedcompanies.Based on above theory research hypothesis is proposed:listed companiescross-listing increases the probability of cash dividend payment,cash dividendpayments and cash dividend payment rate,etc.By an empirical model test the abovehypothesis,get the conclusion and recommendations.The empirical results show that relative to the domestic A share listedcompanies,A+H share listed companies prefer to pay cash dividends to investors, thepayment of probability and payments are significantly larger than A share companies.Strict legal system of Hong Kong’s capital markets and improve investor protectionsystem,forcing listed companies “spit out cash”through dividens,reduce theinfringement to small investors interests.By analysis of ownership concentration andequity balance degree show that with the increase of the largest shareholder,A+Hshare listed company’s dividend increase significantly less than the A share listedcompanies;with the increase of equity balance degree,strengthening effect of thecross-listing cash dividends weakened.Strict supervision mechanism to the bigshareholder in Hong Kong capital market,strengthen the supervision to controllingshareholder in cross-listed companies,effectively avoid the interest of small shareholders infringement by big shareholder,and enhance the level of protection forsmall shareholders.Through the empirical test combined with theory analysis, this paper put forwardthe following Suggestions to improve the protection of small investors. First,strengthen the system construction of China’s capital market, improve the investorprotection system; Second, strengthen the investor education, establish scientific andrational investment philosophy, enhance small investors self-protection abilities;Finally, strengthen the supervision to listed companies, and guide enterprises focus oninvestor returns, enhance investor confidence, promoting the healthy development ofcapital market in China.