Impact Of Cross Listing On Corporate Social Responsibility

With rapid development of market economy and continuous upgrading of international competition,business demand for capital scale gradually increases.At the same time,the macro background of economic globalization and liberalization of global capital flow restrictions provide good external opportunities for companies to broaden financing channels,expand market share and improve international competitiveness.More and more companies that are not satisfied with mainland market financing choose to cross-list in Hong Kong and even overseas market,in the hope of enhancing corporate value through comprehensive utilization of domestic and foreign markets’ advantages.With regard to the impact of cross listing on companies,there have been domestic and foreign scholars studying the influence of better legal system and regulatory environment in overseas market on companies from the perspective of lowering cost of capital,improving corporate performance,improving level of corporate governance and strengthening information disclosure quality,but few discuss its impact on corporate social factors.Recently,with the strengthened restrictions that demand,environment,resources and public reputation put on the enterprise value and shareholder wealth,the impact of corporate social responsibility on enterprise value is increasingly concerned.So,what kind of impact will AH cross listing have on corporate social performance?What are the differences between the mainland and Hong Kong stock market,which will ultimately affect the performance of corporate social responsibility?What is the mechanism of this influence?This paper studies from the perspective of corporate social factor,combined with current situation of cross listing in A stock market,discusses and examines the impact of cross listing on corporate social performance through empirical analysis,and further come up with justified proposals to improve the performance of corporate social responsibility.This paper selects data of non-financial A-share listed companies from 2009 to 2013 as sample and empirically studies on the impact of AH cross-listing behavior on corporate social performance through multiple regression,and adds litigation risk and analyst following as moderate variables to examine their impact on the relationship between cross listing and corporate social responsibility.The results show that cross listing significantly promotes corporate social responsibility and this promotion can be achieved through the constraint effect,that is,the stricter legal environment and regulatory system in Hong Kong market can help improve the level of corporate governance,so as to improve the level of corporate social responsibility,which provides support evidence for governance view of corporate social responsibility.