Empirical Study On The Relationship Between Cross-listing And Corporate Performance

Cross-listing refers to the behavior of a company in the issuance of shares in two or more security markets.The practice of cross-listing for Chinese enterprises is relatively later,and mainly cross-listing of A shares and H shares.O n the basis of Western theoretical hypothesis,the academic research in China on cross-listing focus on the short-term market reaction or long-term market performance of cross-listing.However,the indirect effects of the crosslisted company's operating performance don't get sufficient attention.In addition,there is a huge difference between C hinese cross-listing behavior and foreign cross-listing behavior.Therefore,based on the uniq ue characteristics of AH cross-listed enterprises,the article makes AH cross-listed companies as the object of study,on the basis of building the internal mechanism which cross-listing behavior affect the operating performance,we conduct a empirical study on the relationship between on the behavior of C hinese AH cross-listing and corporate performance.First of all,the research on cross-listing is reviewed and summarized.Based on bonding theory,corporate governance theory and government intervention theory,a mechanism that cross-listing behavior affects the operating performance is established.This paper analyzes the mechanism of cross-listing behavior on corporate performance from three aspects: capital cost,corporate governance and government intervention.Secondly,on the basis of clarifying the relationship between cross-listing and corporate performance,we choose the balance panel data of the “first H then A” and pure A-share listed companies from 2010 to 2015.Using the eight financial indicators that reflect the development,repayment and profitability of a company,we construct a comprehensive measure of company performance by principal component analysis.The effect of cross-listing on corporate performance is analyzed by constructing multiple linear regression model.The result shows that cross-listed firms underperform non-cross-listed firms in terms of operating performance.Further more,using Heckman two-stage treatment model to solve the sample selection problem,we find that the conclusion remains unchanged.In addition,this paper finds that ownership concentration,managerial payment and the ability of growth have a positive effect on corporate performance,while debt ratio has played a reverse role.Therefore,this thesis argues that the theory of cross-listing proposed by Western scholars is not suitable for explaining the Chinese cross-listing situation,and the theory of government intervention proposed by domestic scholars is in line with the reality of cross-listing in C hina.