Research On The Effect Of Cross-Listing On The Governance Effectiveness Of GF Company

Listed companies are the leaders of economic growth in China.The purpose of cross-listing in different stock exchange markets is not only to raise funds,but also to make stable development in the future by means of different capital market platforms.Through more strict and standard external supervision and management,listed companies can make enterprises further improve their governance structure,governance level and governance performance,so as to maximize their own interests.Based on the accounting theory,this paper takes the cross-listed GF Company as the research object.Market segmentation hypothesis,liquidity hypothesis,investor cognition hypothesis and constraint hypothesis are the theoretical basis of this paper.On the basis of this theory,the effectiveness of corporate governance after cross-listing is studied and an evaluation system is formed.This system evaluates the governance effectiveness of GF company after cross-listing from two aspects of governance structure and governance performance.The governance structure of GF Company is evaluated from controlling shareholder governance,board governance,senior management governance,board of supervisors governance and stakeholder governance.The governance performance of GF Company is evaluated from three aspects:financial performance,economic performance and market performance.By using the entropy method to give weight to the index,the paper calculates the overall score of GF’s corporate governance effectiveness and compares it with the same industry,and finally comes to the following conclusion:(1)The company’s entry into another securities market,which is different from its own environment,has a positive externality effect on the corporate governance structure under the restriction of market rules and the diversification of financing channels.But has negative effects on the company’s governance performance.(2)Cross-listing can improve the corporate governance.Listing in different stock exchanges can improve the corporate equity structure and governance efficiency of stakeholders.At the same time,cross-listing will make enterprises face relatively strict market supervision.(3)Short-term cross-listing has little or even reverse effect on corporate governance performance.A cross listing could lead to Information asymmetry,giving investors blind confidence.Cross-listed companies get more owners’rights and interests,but the funds have not been well used in a short time,so cross-listed companies should pay attention to the management quality and efficiency of their assets.