The Research On The Effects Of Overseas Listing On The Corporate Governance Of Chinese State-owned Enterprises

In practice, since 1970's, companies listed overseas as a purpose of improving the national economic efficiency, have been tested by over 100 countries in the world. In China, the state-owned enterprises began their journey of being listed overseas since 1993, when QINGDAO BEER was listed in HK securities market. Three basic reasons of doing so, as follows: First, Companies Listed overseas can push ahead the innovation of state-owned enterprises; second, it can broaden the channels of incoming foreign currency to accelerate the capital accumulation; the last reason is advertising for a good reputation through the capital market overseas. Through the statistics, most of state-owned enterprises are successfully listed overseas by issuing H-shares or red chips in the HK STOCK EXCHANGE.In theory, there are two kinds of studies on overseas listing Chinese enterprises. One is based on studying the price connections between A and H shares. Another is trying to reveal the motivations of being listed overseas. In motivation theories, at the beginning, the researches are mostly focused on business motivation. Then, by the end of 90's, research on motivation of corporation governance showed up. The management of overseas listing companies become the focus around the academia day by day. However, the state-owned enterprises have their own way of administration. Also, there're few articles about them, let alone the ones listed overseas.The paper also tested the promotion of overseas listing on state-owned enterprises by empirical analysis. As follows: overseas listing state-owned enterprises have more perfect board system, which can ease the insider control phenomenon to a certain extent; them can build a dynamic and long incentive mechanism relatively, and by this, managers'expected revenue will be closely linked with enterprises'long-term development; them can reduce related transactions, and promote the level of corporate governance. Besides, the paper compares the regulation system and regulatory environment of HK securities market with mainland's. Last, the paper reaches the conclusion that regulation environment of corporate governance in HK is better than that in mainland.