| After the opening up,China’s capital market has ushered in a large number of opportunities.The rapid growth of enterprises has led to intensified market competition.Some companies make profits by playing "edge ball"and illegal means.In recent years,some listed companies at home and abroad have been repeatedly accused of serious illegal activities.Enterprise is an important subject of market economy,any link of their production and operation may bring harm to the healthy development of the market and leave hidden dangers to the society.Either out of the spontaneity of the market,or out of the deliberate action of the managers,the company’s violations occur frequently,and the number is so large that it needs to be paid attention to.Although the market is adjusting itself and the regulatory authorities are speeding up punishment,the violations is still serious,which is difficult to curb and eradicate.We also need to actively find more effective policies or market mechanisms to curb the illegal behavior.With China’s opening up,in order to speed up the improvement of the financial market and build China into a world financial center,we are also actively exploring the way of opening up financial activities.In recent years,we have successively launched the "Shanghai-Hong Kong stock connect" and "Shenzhen-Hong Kong stock connect" systems.As the main body of the emerging market,China’s opening to the outside world not only increases China’s investment channels,but also helps to indirectly expand China’s economic volume.Moreover,the participation of foreign investors can promote the listed companies to strengthen internal governance,so as to use the market to regulate the illegal activities among companies,so as to build the market economy most effectively.Stabbing at public policy and market mechanism,this paper selects the"Shanghai-Hong Kong stock connect" policy to study whether the"Shanghai-Hong Kong stock connect" mechanism can purify the illegal environment and reduce the illegal activities of listed companies.My paper takes A-share companies as sample,selects the annual data from 2011 to 2018,refers to relevant literature,and obtains 5787 sample data after data cleaning.Taking whether listed companies are listed in the "Shanghai-Hong Kong stock connect" as the main explanatory variable and illegal behavior as the explanatory variable,this paper uses logit model and Poisson model to test the relationship between listed companies being listed in the "Shanghai-Hong Kong stock connect" and illegal behavior.The results fully prove that the"Shanghai-Hong Kong stock connect" can restrain the violations of listed companies.The conclusion of this study can still be obtained after changing the explained variables,sample lag and PSM test.Further analysis shows that the inhibition effect is stronger in private enterprises and companies with poor internal control;Compared with public utilities and comprehensive companies,real estate,industrial and commercial companies are more vulnerable to the impact of the "Shanghai-Hong Kong stock connect" mechanism.In addition,this paper also finds that the market effect of "Shanghai-Hong Kong stock connect" mechanism is more significant under the effect of short selling mechanism."Shanghai-Hong Kong stock connect" can affect many characteristics of the development of listed companies.In previous studies,scholars pay more attention to the influence of Shanghai-Hong Kong stock connect mechanism on stock liquidity,market volatility,enterprise innovation and so on.On the basis of relevant research,this paper tests the inhibitory effect of "Shanghai-Hong Kong stock connect" on listed companies’ violations through literature analysis and empirical analysis.From a new perspective to explore new ways of corporate governance,on the one hand,it provides reference and new research perspective,on the other hand,it provides a reference for relevant departments to govern corporate violations. |
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