Motivation, Choices Of Listing Location And Effect After The Event Appearing Studied Of Inland Enterprise Listing Oversea Markets

To face the hot spot phenomenon of financing, the theory appear on the market of overseas financing is rather plentiful. The purpose of appearing on the overseas market, the affect to the price of the stock and value of capital in the oversea market and the affect which is the oversea market to the company governs are the standard of the make concession and review for the today's theory.With the development of globalize economy. International stock unite has been the new sparkle of the unite capital. Enterprise striding over boundary in main exchange, appearing in the market in the world is already taken up to very big proportion. Our country inland enterprise appears in the market overseas since 1990. During twenty years, it passed through four upsurge of the overseas stock storm. The reform of stock right and the disadvantage of chinese stock market produced the special background of coming into the market on abroad. We have introduced those problems in the second part of this paper. Inland enterprise can choose various ways in coming into the capital market on abroad, in this one chapters and sections various way of appear in the market and their advantages and disadvantages has done out detailed analysis. Although the theory gives many explanations to the motivation of the overseas market. But the third chapter analyze the motivation of the oversea market with combine economic background in our country, it includes the motivation of reducing of the cost of capital, improving the company governs and the motivation of the company strategy.The choice of the exchange is the important step of listing abroad. The four chapter discuss about the factors of choosing exchange. The first, company must think about the character of the exchange which includes liquidity, the scale of exchange, the degree of bond analyst'attention and the affect of be with your peers. Second, it's worthy to take care of the institution where the exchange is in and the character of the culture, which includes the environment of the law, the standard of accounting, and environment of culture. These factors will make large effort to the following display of the stock.There are 283 firms in the overseas market for four countries(regions) totally in august 2006, among them are 132 firms in Hong Kong, 82 firms in U.S., 13 in England. For the present data, the article examine effect after the event appearing from three angles, one is financing, it obviously exists the pheromone of appear on the market crossly, and nearly all the firms in NYSE are fit it. By analyze the conduction, the conclusion is that it is much easier to the firms which are acrossing listing gain financing from outside than appear on the market alone. Second for the angle of the company governance, the article researched into the effect of the companies which appear on the overseas market can improve and govern themselves, through the case of Bank of China (Hong Kong) Limited , I discovered it is the vary effect channel to improve the domestic companies. Thirdly, through the study of the exchange which companies chose in appear on the overseas market, it discovered on behalf of the information technology of the high technology industry and financing industry have the effect of to be with your peers. The two industries have their own preference in the exchange choosing of listing abroad.As going deep into and the opening policy expansion and restructuring the economy with our country, listing aboard has become the new hot spot phenomenon of financing. Consider from the microcosmic, not only can the appearing on the market abroad satisfy the necessary of the company, but also can improve the governance of the company, raise the reputation of the company and help for company overseas development strategy. But we must face to the expensive fee of listing abroad, and come over the difference between the institution and the culture. Different the results come from the different choice of the exchanges. I hope the research of the paper could help the companies in the foreign exchange and the strategy in company finance.