The Decision Motivation And Effect Of Reverse Cross-listing:An Emporical Study On Chinese Company

Since the beginning of this century,with rapid development of domestic and foreign capital markets,an increasing number of Chinese companies tend to choose reverse cross-listing which is contrary to “traditional wisdom” and listed in two or more stock markets.There are abundant research achievements of traditional cross-listing from both domestic and foreign scholars.But the researches of reverse cross-listing are not so many,especially the reverse cross-listing researches of Chinese companies.We chose the Chinese reverse cross-listing companies that listed in Chinese stock market and Hong Kong stock market in period of 1993-2015 as our research samples.Combining classical theoretical hypothesis and current environment of China,we fully analyzed the motivations and economic consequences of reverse cross-listing of Chinese companies with statistical analysis and positive analysis methods.Our researches mainly include motivation researches and economic consequence researches.In the aspect of decision motivation researches,we analyzed the main motivations of reverse cross-listing of Chinese companies by structuring COX PH model and Logit model mainly based on the characters of Chinese companies and market indexes.The research results show that at a company level,companies with more intangible assets,better financing capacity,lower ownership concentration and better profitability prefer to reverse cross-listing.At the market level,when the A stock market is running well and companies can get higher valuation premium and lower cost,the company is more willing to choose reverse cross listing.But the company's overvalued value is not a long-term phenomenon because of A share market mechanism adjustment.In the aspect of economic consequence researches,we mainly inspect the company's own governance capability and the market transfer spillover effect.The result of Governance ability research shows that compared to the single listed A shares,the reverse cross listing companies have a higher company value,and the management ability is obviously better than non-cross listing companies;from the company's view,their management level has been significantly improved after reverse cross listing,which indicate that reverse cross listing will improve the corporate governance ability.Transfer market spillover effect shows that the Hongkong market has stronger influence volatility of the mainland market on an unidirectional way,and after reverse crosslisting,company will also produce significant volatility effects involved in both the mainland market and the industry,but as times going,the mainland market to reverse cross-listing companies will produce transfer spillover effect,forming a two-way transfer spillover between financial markets,reverse cross-listing companies in the market transfer spillover effect plays an important role like "media" in promoting the linkage development of Hongkong market and the mainland market.This study not only enriches the theoretical results of Reverse Cross-listing,but also gives policy recommendations to the securities market,the company and investors.