Impact Of Capital Market Opening On The Enterprise Value Of Listed Companies

The implementation of high-level opening policy is the only way for China’s capital market to gradually mature.On December 5,2016,the "Shenzhen-Hong Kong Stock Connect" was officially opened,which is another landmark reform of the opening of China’s capital market,and is an important measure for the opening of China’s capital market after the "Shanghai-Hong Kong Stock Connect".The Shenzhen-Hong Kong Stock Connect has introduced foreign investors,promoted capital flow,dispersed market risks,and reduced the cost of capital for enterprises,thus bringing low-cost capital to enterprises.On the one hand,in the daily production and operation cycle,the expansion of business scope and the improvement of profits cannot be separated from capital investment,and sufficient financial capital can affect the value of enterprises.On the other hand,foreign investors are mainly institutional investors,who can play an effective external supervision role,promote enterprises to disclose high-quality information,improve corporate governance,and constantly improve the company’s performance,and then enhance the corporate value.At present,the research on the opening of the capital market focuses on the market volatility,economic growth and other macro levels,and the research on the influence at the micro level needs to be deepened.From the micro perspective,the article studies the impact of "Shenzhen-Hong Kong Stock Connect" on the value of enterprises.On the one hand,it has important practical significance and provides data support for China’s steady promotion of the capital market opening policy.On the other hand,it also has an important theoretical significance to enrich the research between the enterprise value and the opening of the capital market.This study is based on principal-agent theory,information asymmetry theory,signal theory,and market segmentation theory.Due to the possible selective bias problem of whether to be included in the Shenzhen-Hong Kong Stock Connect,in order to avoid the influence of endogeneity problems on the research conclusions,the samples were first matched with propensity scores,and then the PSM-DID model.On this basis,financing constraint is added as the intermediary variable,which verifies the influence path of "capital market opening--financing constraint--enterprise value",and broadens the research on the influence mechanism of capital market opening on enterprise value.The empirical test shows that the value of listed companies has increased significantly after the implementation of the Shenzhen-Hong Kong Stock Connect.The study on the action path finds that the "Shenzhen-Hong Kong Stock Connect" can promote the value of enterprises by alleviating the financing constraints.The robust test with placebo tests and proxy variables that replace corporate value remained significant.After further study,it is found that the impact of the Shenzhen-Hong Kong Stock Connect on enterprises is different.First,in state-owned enterprises and manufacturing enterprises,capital market opening has a stronger effect on enhancing enterprise value;second,it has a stronger effect on enterprises with higher listing age,lower growth and higher yield.Finally,according to the grouping of different sectors of the sample companies,the research found that the effect of "Shenzhen-Hong Kong Stock Connect" on improving enterprise value is significant in the main board listed companies.Based on theoretical analysis and empirical research,this study puts forward countermeasures and suggestions for the opening of China’s capital market from the perspective of government supervision and enterprises themselves: regulators should control the risks,deepen the capital market opening policy and create a good financing environment for enterprises;enterprises should constantly improve their own construction,strengthen their financial ability and actively respond to the national policy.