Effect Of Cross-listing And The Share Price Performance Of The Company

Cross listing means a listing that one company lists its equity share on two or morestock exchanges. Usually, it lists its equity shares in two different countries or regions.The history of cross-listing in China accompanies with the development of domesticcapitalmarket. Most of these large companies are state-owned or state-holding.They areare important microeconomic foundations of national economy. Cross-listing onrelatively mature markets overseas can promote domestic stock market developnormally and bring Chinese market more chance in international cooperation.so,relevant researches can expand the theory of Chinese enterprise reform and capitalmarket development, as well as enrich and perfect the theoretical system of cross-listingstudy. The related researches can provide beneficial references for governmentdepartments grasping the market tendency accurately and formulating correspondingpolicies, as well as for investors and listed companies when making decisions.This paper combined with the background of economic development with Chinesecharacteristics,and the characteristics of Chinese companies cross-listing. This papertakes cross-listing activities in China between the domestic A-share market and HongKong H-share as research object. Based on the analysis of its background, Cross-listingsmode and characters of cross-listing companies, the paper studies the effect of crosslisting comprehensively and systematically through empirical research:①the influenceof cross listing on operation performance from the point of view of thecompany;②market response of cross listing from the point of view of investors;③pricediscoveryand fluctuation spillover effect from the point of view of market interaction. These threeaspects construct a new research framework on theinfluence of cross listing in China.First of all, from the perspective of the company, how dose the cross-listing effectthe company’s business performance. Companies can finance in more than onemarket.after raised a lot of money, the company have the ability to product research anddevelopment, marketing and other business activities.At the same time, the companyoperation performance have been greatly improved after cross-listing. however, Theempirical results showed that cross-listing has not positive effect on businessperformance in the short term.Secondly, from the perspective of investors, what are the market reactioncross-listing brings to the market.Cross-listing is bound to the impact of relevant market,the investors on the market necessary to respond to the impact, mainly reflected in thecross on the listed company itself and the company’s stock price changes. Throughinvestigating the company itself as well as peers from other companies market reaction,we found that cross-listing effect is different between the two, for the company itself ismore positive news, in the same industry companies, is more of a negative message.Finally,on the basis of comprehensive full text, the article come to a conclusion, putforward related policy recommendations to our government and company, and then givefurther research ideas.