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A Study On The Effects Of Oversea Listing On The Financial And Operating Performance Of Chinese State-Owned Enterprises

Posted on:2007-04-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:F F LuoFull Text:PDF
GTID:1119360212456083Subject:International trade
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According to M-M theorem, the choice of listing location was useless if the global capital market was a perfect integration market. However, overseas listing is becoming an increasingly important strategic issue for companies. A concomitant growth of theoretical and empirical studies seeking to understand the benefits and costs of the corporate decision to list shares on overseas exchanges have shown the impact of listing abroad should not be overlooked.From 1993 to 1998, five batches of state-owned enterprises (SOEs) have been selected to be listed on overseas exchanges by Chinese government agency to attract foreign investment and accelerate SOEs reform. The number of Chinese SOEs listed on overseas exchange increase rapidly science 2000 years, while overseas listing had been significantly slowdown after the Asian financial crisis. There are two alternatives for SOEs to be listed and traded on international capital market, the typical listing (issue ordinary shares) or Depositary Receipt (DR) program. Statistically, most SOEs are listed in Hong Kong Stock Exchange by issuing H-shares or red chips. Meanwhile, some of them are listed in the United States market through ADR program or in London Stock Exchange (LSE) through typical listing.There are two strands of literature attempts to explain overseas listing of Chinese enterprises. One attempts to explain the relationship between the price of H-shares and A-shares. The other attempts to rationalize why firms pursue overseas listings in one aspect, such as the effect of overseas listing on capital structure, corporate governance and risk exposures of the companies. This study investigates the effects of overseas listing on SOEs' financial and operating performance.Theoretically, there are three major influences on the performance of overseas listing SOEs: the positive privatization effect, the negative IPO effect and the positive overseas listing effect. This study compares the financial and operating performance before and after postlisting A-share listing for 27 SOEs, which had been listed in Hong Kong before 2003 with the use of nonparametric methods and multiple regression analysis. Major findings are: (1) A+H cross-listed SOEs are larger then pure A share firms, which can be explained by the difference of industry, reconstruction and selection process between them. (2) The results of nonparametric...
Keywords/Search Tags:Overseas Listing, State-owned Enterprises, IPO, Privatization, Performance
PDF Full Text Request
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