| During the past three decades, the pace of globalization in capital markets has accelerated and broadened in scope to make easier ownership and trading in securities from around the world.In China, capital market development for 30 years, achieved great success。However, as the process of financial globalization, more and more enterprises are willing to overseas listing Chinese companies listed on overseas market with the introduction of direct and indirect two ways. Direct listed is the territory of China as the direct application to the legal issue of foreign exchange trading exclusively for foreign investors and the stock market. Currently Chinese enterprises listed overseas locations including Hong Kong, London, New York and Singapore. The indirect overseas listing is the company’s foreign affiliates abroad issued outside the stock market or in the acquisition of a foreign listed company backdoor listing.Many companies have chosen Hong Kong as a destination for overseas listing. For one hand, Hong Kong is an international financial center, for another hand, because of its geographic and political reasons. In 1993, Tsingtao brew listed on Hong Kong market, since Chinese companies listed in Hong Kong has grown. Also many cross-listing is also increasingly. A lot of domestic companies listed in Hong Kong returned to market, while domestic companies listed on overseas market expectations. As of December 31,2010 a total of 66 companies listed on both the A-share market and the H-share market. Where the 52 companies listed on H-share market first, the 7 companies listed on A-share market, the 7 companies listed on the securities market at the same time. And I believe that with the further opening of China’s capital market, coupled with the rapid growth of our company, there will be more businesses to choose cross-listing.As the international cross-listing on the growing number of companies, the scale of cross-listed companies continues to expand, so cross-listed companies on the importance of the capital market also growing. Therefore, some researchers began to study whether these cross-listed companies will affect the domestic capital market or not? Whether these cross-listed companies will affect on the other domestic listed or not? If it does, whether positive or negative effects? This effect is the spillovers. But so far now, there are a little of theory of cross-listing, lots of research are concentrated in the cross-listing causes, the price differences between different markets and changes in the value of cross-listed companies. The cross-listing spillovers research are extremely rarely. Because of the sample restrictions, previous study on cross-listing spillover effect only focus on companies, which first listed on H shares market, and then listed on A shares market. However, since 2006, more and more companies listed on A-share market first or listed on the securities market at the same time. There are no studies on different path cross-listing spillovers, so the spillover effects on cross-listing is a hot new research field.The purpose of this paper is that through the studies on cross-listing from 2006 to 2010 Analysis of cross-listing whether effect on domestic listed companies or not? If it does, whether different paths cross-listing have different effects? Whether positive or negative effectsThis paper should include theory, empirical analysis, suggestions and the results of several parts. Therefore, the main content of contains following parts:The first chapter is an introduction. This chapter mainly from four aspects: first article describes the research background and significance; second this paper analyzes the ideas and research methods; third illustrates the structure of this paper; and finally summarizes the main innovation of this article.The second chapter is pretext, which reviews the relevant research fruits in this field. These researches include cross-listing of motivation, cross-listing companies performance, particularly on cross-listing spillovers.The third chapter is analysis of cross listing development in A-shares market and H-shares market, summarized China’s enterprises cross-listing features. I concluded that compared to cross-listed companies’before 2006, cross-listed companies after 2006 have large enterprise market value, the significant trading volume, more significant impact on domestic listed companies. Therefore, study on the spillover effects of cross-listing, which after 2006, is a very high value. The fourth chapter is a theoretical basis. Theoretical analysis why cross-listing has spillover effects on domestic listed companies. Summed up market segmentation hypothesis is the theoretical basis of positive spillover effects, while the bonding hypothesis is the theoretical basis of the negative spillover effects.The fifth chapter is the main part of this article. First proposed two hypotheses, one cross-listing have spillover effects on domestic listed companies; another different paths cross-listing have different effects. Second, explain why I select the events study and the multiple linear regressions to test the two hypotheses. Third, Analysis of the events study results, I found that listed on H-share market first and listed on the securities market at the same time have positive effects on domestic listed companies; listed on A-share market first have negative effects on domestic listed companies. Fourth I use the multiple linear regressions results to obtain the same results.The sixth chapter is the summary results of this study, analysis of the inadequacies, and finally the possible development of future research and recommendations.Because lots of researches are concentrated in the cross-listing causes, the price differences between different markets and changes in the value of cross-listed companies. The cross-listing spillovers researches are extremely rarely. Because of the sample restrictions, previous study on cross-listing spillover effect only focus on companies, which first listed on H shares market, and then listed on A shares market. This paper studies the spillover effect on different paths cross-listing, so the main contribution of this paper:(1) Innovation of the research, this paper first the spillover effect on different paths cross-listing, first study of the spillover effects on A-shared market listed first and on the securities market at the same time listed.(2) Innovation of the research method, I use the event study method, study the changes in domestic listed company’s share price, to explain whether these cross-listed companies will affect on the other domestic listed or not? I also use the multiple linear regressions to explain the spillover effect. Most studies only use the multiple linear regressions as empirical research methods. (3) Update the research data, I use the date of listed companies from 2006 to 2010, so I can obtain sufficient number and time close samples. I can effectively study on the cross-listing spillovers and suggest improvements based on the results. |
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