Study On The Effect Of Corporate Governance Of A+H Dual-listed Shares

Dual listing is the behavior of one company listed on two different stock exchanges. In recent years, H-shares have returned to list on mainland market to become dual-listed shares. And this has become a visible phenomenon in the development of China's securities market. Particularly since 2001, with the gradual lifting policy of dual listing, the dual-listed Chinese companies increasingly become common, and its impact on the domestic securities market is also growing.As the Mainland stock market developed rather late, and there are many serious flaws, such as split share structure, the backwardness of legal system. This leads to a serious shortage of market financing function and the effect of corporate governance of the mainland stock. Mainland enterprises went to Hong Kong for dual listing, and it is not only to meet demand for capital for the business but also constraint the Mainland companies by the Hong Kong stock market system. This can facilitate the process of restructuring companies to establish a relatively perfect modern enterprise system and to promote corporate governance.This article is based on the above background and the corporate governance effects of A+H shares were studied. Compared to A-share companies, the A+ H shares face more stringent legal environment and market environment. This article first combs the concept and content of corporate governance, the relationship of dual listing and corporate governance, and the effect of corporate governance theory is summarized. The theoretical foundation of corporate governance effects of derives from binding hypothesis, followed by a group of scholars studied the binding hypothesis and development, and further the reputation of binding hypothesis put forward, such as signaling hypothesis. After the theoretical analysis is the empirical research. First, the study of governance between the A+H shares and the A-shares is compared. The author uses 12 governance indicators, from both internal governance and external governance point of view, and external governance indicators found in the A + H dual-listed shares of mainland companies is better than A-share companies, and internal governance indicators are not good. Second, through the regression analysis between corporate governance level and performance of two types of companies, The author tests the impact of dual listing to results of the companies and finds that the level of the Mainland and corporate performance relationship is not close, and A+H raising the level of internal governance corporate performance can enhance the performance of the company. Findings were summarized in the last part of the research. And the author makes recommendations to the behavior of dual listing of mainland enterprises in Hong Kong and the improvement of domestic stock market.