Dual Listed Company Market Timing Behavior Of Existence

In recent years,some western scholars have found market timing are playing an increasingly important role in the financing decisions of global view. Many companies are common to issue equity securities in foreign capital market where firms'market value of equity is temporarily high relative to domestic value.This is the market timing behavior of dual listed company which is usually studied, and it's purpose is to obtain short-term pricing advantage of international capital markets relative to domestic market.But in fact,the market timing behavior of dual listed company also includes the other hand----the choice of going public at the second capital market,however,the related research at home or abroad are also less.As dual listed companies are free to choose the timing of listing equity securities in domestic market or foreign market,and dual listed companies have better information disclosure and investor protection. So compared to the companies going public in domestic market,dual listed companies have more and better market timing choice.In theory,the dual listed companies can better grasp this opportunity. In view of this,this paper selects Chinese dual listed companies as the research object, in order to attempt a empirical test to research whether H-share companies which return to A-share for dual listing can grasp the good market timing choice.This paper reviews the domestic and foreign research about dual listing and the market timing theory.Then the traditional capital sturcture theory,market timing hypothesis and market timing theory are described.In the part of empirical research, we select Chinese dual listed companies as the research object, in order to attempt a empirical test to research whether H-share companies which return to A-share for dual listing can grasp the good market timing choice. The empirical results show that,unlike the number of foreign mature capital market,when H-share companies return to domestic A-share market for dual listing,it fails to grasp the market timing for large-scale equtiy financing which the company market value is being overstated. On this basis,the paper explains the result from three reasons.