Cross Listing?Company Governance And Corporation Performance

Cross-listing usually refers to the listing of the same company in two different countries or regions.Since the 1990 s,the practice of cross-listing of Chinese enterprises has occurred with the development of the capital market.At the same time,due to the geographical and cultural proximity between Hong Kong and China,the capital market choice of domestic enterprises in China is mainly the mainland market and the Hong Kong market.Therefore,the cross-listing path of "A+H" shares has become the choice of cross-listing practice favored by domestic enterprises.By the end of 2017,the Hong Kong stock exchange website shows a total of 98 "A+H" cross-listed companies.Because cross-listing practice of our country has a relatively strong institutional constraint and government guidance and "A + H" cross in the listed companies are mostly large state-owned enterprises and these "A + H" companies in the stock market also are the important role that they can affect the entire market.Since the development of China's capital market started late,the overseas developed capital market is more mature than that of China.By going to overseas developed capital markets for cross-listing,Chinese enterprises can learn from the experience and norms of developed capital markets and accelerate the speed and quality of the integration between China's securities market and developed capital markets.From the perspective of reality,the practice of cross-listing of Chinese enterprises in recent years has grown faster than that in the past,and it has a great impact on investors,companies and the entire capital market.Therefore,the research on cross-listing can not only improve the theoretical system of listing and capital market,but also provide certain basis for investors to make investment,companies to make business decisions and governments to make macro policies.This paper empirically studies the influence of cross-listing on corporate governance and corporate performance,and also explores the mediating effect of corporate governance due to the corporate governance mechanism that cross-listing affects corporate performance.Based on the domestic enterprises listed on the "A + H" practice as the research content,the first comb the research findings and the literature about cross-listing,provide necessary theoretical basis for study of this article and the empirical evidence,at the same time,fully using the relevant theories,demonstrate the relationship of the cross listing,corporate governance and corporate performance.Then put forward assumes of this article.In constructing a good variable model,on the basis of extraction enterprises paneldata from 2008 to 2017 for empirical research,using spss19.0 and stata14.0 measurement software for quantitative analysis of this data,from the angle of the company survey the cross-listing influence on corporate governance and operating performance,at the same time,study the mediation mechanism of corporate governance,and in the process of cross-listings and corporate performance empirical adopt the approach of the dependent variable lag issue for robust test,fully guarantee the reliability of the empirical results.The study finds that the performance level of "A+H" cross-listed enterprises is lower than that of the matched pure A-share enterprises.Based on further analysis,it is concluded that the company's performance decline is caused by such factors as the cost of cross-listing,the long period for the realization of benefits,the profit and statement manipulation of accountants to meet the requirements of additional share offerings,and the improper operation of enterprises.At the same time,this paper believes that cross-listing can "rent" the governance experience of developed capital markets and be continuously supervised by external media and investors.It is concluded that cross-listing can improve the level of corporate governance and enhance the protection of investors' rights by improving the quality of information disclosure.On this basis,according to the mediating effect test mechanism proposed by wen zhonglin(2005)and the sobel test and bootstrap method adopted for robust results,it is found that corporate governance can play a positive mediating role in the process of cross-listing worsening corporate performance,that is,corporate governance can reduce its "discount".Finally,on the basis of the research conclusions,this paper puts forward policy suggestions to relevant government departments,companies and investors,and points out the research limitations and follow-up research assumptions of this paper.