The Impact Of Domestic Companies' Overseas Listing On Corporate Value

With the further development of economic globalization,more and more domestic companies choose to list overseas in order to gain capital.In recent years,some technology companies and "unicorns" have rushed to overseas.Under the background of the novel coronavirus pneumonia,there has been a small peak of listing overseas for domestic companies.The reasons for that can be mainly classified into three categories,overseas financing,corporate governance and international brand strategy.The finally target for these reasons maybe to gain the company value.From finance,company value means higher operating profit.From corporate governance,it means greater development potential and social status.However,the current study about the relationship between overseas listing and corporate value are mostly focused on theoretical analysis,and lack of systematic exploration of the influence mechanism between two.Through reading relevant literature,this paper base on the liquidity hypothesis and empirical study,exploring the changes of the company value of domestic companies which overseas listing.This article raise three hypothesis: The first is overseas listing have a positive relationship for corporate value.The second is the size of corporate stock liquidity is relevant to the overseas listing.The third is corporate stock liquidity enhances corporate value.Through verifying the three hypotheses,the paper come to the conclusion: The first,the overseas listing of domestic companies has a positive impact on corporate value;The second,the overseas listing of domestic companies has a positive impact on corporate stock liquidity;The third,domestic companies have increased corporate value by obtaining higher liquidity in overseas markets.At the same time,in order to provide references for domestic companies of different corporate natures,this article also conducts a group test about whether companies of different natures have differences of corporate value in the process of overseas listing.At the end of this article,we also analyze the financial performance and market value performance of ZTE Corporation after overseas listing,providing case support and suggestions for domestic companies which want to list abroad.