Stock Returns Of Cross-listed Chinese Companies

For Chinese listed companies,their various behaviors,whether good or bad,may attract investors’ attention.Good business strategies and behaviors,once published by the media or the company itself,may arouse or strengthen investor attention to the company.Since investors’ attention is limited,their attention to a certain company will decrease relative to other companies when they increase their attention.In this case,the possibility of investors buying the company’s stocks will also increase,pushing up its value performance in the A-share market.Simultaneous listing on domestic and foreign exchanges can effectively reduce the capital restrictions and constraints faced by the company and improve corporate governance.Not only that,it can also alleviate the phenomenon of market segmentation,expand the shareholder base of the company,and achieve better risk sharing,thereby reducing Financing costs for the business.According to previous theoretical analysis and empirical testing,cross-listing of a company means that it is voluntarily linked to the legal rules of the country where it is listed.Commitment to comply with stricter requirements and rules,which not only enables listed companies to improve corporate governance,but also helps to strengthen the protection of small and medium investors,thereby effectively enhancing investor confidence.This paper focuses on the study of Chinese enterprises’ cross-listing as a behavior that is beneficial to the improvement of the enterprise’s own governance capability and the protection of its investors’ interests,whether it can effectively attract the attention of domestic investors or not.It also studies whether the attention caused by the behavior can boost the value of the company in the domestic A-share market in the short term,and whether investor attention can play an intermediary role in the process of boosting stock returns by cross-listing behavior.