The Comparison Analysis On Performance Of A+H Dual-Listed Companies In China

Since the1970s, with the continuous development of global economic integrationand the gradual relaxation of the national financial control, corporate cross-borderdual-listing become a common phenomenon in the international capital markets.Cross-border equity financing decision of corporate attracted widespread concern ofthe experts and scholars, and makes the dual-listing become one of the academicresearch focus. The practice of dual-listing for Chinese enterprises is relatively later,and mainly dual-listing of A shares and H shares. On the basis of Western theoreticalhypothesis, the academic research in China on A+H dual-listing focus on the macrolevel policy discussion and micro-level empirical testing. In the macro level, mainlydiscuss the feasibility of dual listing, and in the micro-level, maily around thefinancing mechanism of the dual listing, the motivation of dual listing, as well asspecific discount between A share and H share. In the lots of studys, although thedirect effect of dual listing is more discussed, ie. the short-term market reaction orlong-term market performance of dual listing, the indirect effects of the dual-listedcompany’s operating performance don’t get sufficient attention. Therefore, in order toexame the relation between the virtual level capital operation and entity level businessperformance, based on the unique characteristics of A+H dual-listed enterprises, thearticle makes A+H dual-listed companies as the object of study, on the basis ofbuilding the internal mechanism which dual listed behavior affect the operationperformance, we conduct a comparative study for the performance changes ofChinese A+H dual-listed companies.Based on the ideas of this thesis, the full text includes six chapters, and isarranged as follows: The first chapter is the introduction, in this chapter, mainlyintroduces the research background and theoretical&practical significance on thisthesis. On this basis, the related concept is defined, also the research ideas andresearch methods is described, as well as the innovations and the shortcomings of thisstudy is outlined. The second chapter is a review of relevant theory and literature, inthis chapter, we mainly focus on the varieties of theoretical hypotheses on dual listing, such as market segmentation hypothesis, constraints theory, corporate governancetheory, and the various theories effect of dual listing behavior.On the basis ofsummarizing the relevant theory and empirical research literature on dual listing, webuild the mechanism framework of which the dual-listing behavior affects firmperformance. The third chapter makes the Chinese A+H dual-listed companies as thestudy object, on the basis of analysis on the institutional background and marketenvironment of the dual listing, we use the descriptive approach to investigate thecurrent situation on the dual listing of Chinese A+H enterprises. On this basis, weanalyse the the characteristics on the dual listing of Chinese A+H enterprises from thedifferent perspectives, such as the listed order, industry distribution, time to marketand so on.Chapters4and5are the empirical research. In chapter4, based on the verticaltime dimension which makes the enterprise itself as a base of comparison, and withthe single performance indicators and comprehensive performance indicators, wecompare the performance of Chinese A+H enterprises for six years before and afterthe dual listing. The results show that, there is a downward trend for the level ofperformance of Chinese A+H enterprises after the dual listing, but the changes ofperformance shows the U-shaped reversal characteristics. On the basis of the verticalcomparison, in the fifth chapter, with introducing the control group as the baselinefrom the horizontal dimension, we compare the performance between China A+Hdual-listed companies with the pure A-share companies, and further explore the effectof dual listing behavior on operation performance. The results show that, theoperation performance of A+H companies is significantly lower than the pureA-share companies, but in the long run, the gap between A+H companies and thepure A-share companies exists gradually reduced trend.The sixth chapter is conclusions and policy recommendations. On the basis ofsummaring the main conclusions on this thesis, we put forward appropriate policyrecommendations for firms, securities markets and government departments. For thecopmanies, it needs to consider the capital size for their own development, notunbridledly too greed to digest capital; It needs to be fully demonstrated the newproject, especially the risk of raising capital investment projects; It needs to fully demonstrate the costs and benefits of dual listing which is integrated the companymarkets, shareholder structure etc; Enterprises must be able to carry out decisionwhich withdraw from the market or sell the shell.according to their own developmentneeds. For the securities market, it needs to further relax the A-share listed companiesto other stock market which has signed a regulatory cooperation with China; It needsto weaken the administrative examination and approval procedures which H-sharelisted companies return A shares, and strengthen legal construction, as well as ex postpunishment of violations; It needs to further strengthen the strict disclosure standards,and reduce the differences of information disclosure. For the government regulators,it needs to further improve the basic work on the legal system and enforcementmechanisms, and to build the overall framework which constraints listed companyand its executives from the integrity of enterprise and executive. From the point ofview of the industrial sector, it needs to further strengthen the amendment of theindustrial directory, explicit standards of the industry project approval. From the pointof view of foreign investment management department, on the basis of anti-monopoly,it needs to reduce the threshold which Chinese enterprises invest in and out of doors.From the point of view of foreign exchange management departments, it needs toprovide smooth channels with regulation for enterprise development and interactionof the economy between home and abroad.The innovation of this study mainly includes: building the mechanism frameworkwhich dual listing affect operation performance; conducting a systematic analysis onthe latest developments and their characteristics of Chinese A+H dual listingcompanies; analysing the effect of dual listing on the A+H companies performancewith the methods of statistical comparisons and regression testing.