Cross-listing Abroad, Enhance The Quality Of The Information And The Path

With the intensification of the degree of financial liberalization and the acceleration of capital flows, the domestic capital market regardless of the quantity and quality can not meet the financing needs of many enterprises, so more and more companies tend to overseas markets for financing, the most significant way is to cross-listing overseas, overseas cross-listing companies have their own different motivations, some of which is indeed in order to finance, while others in order to meet their own commercial motives, such as increasing the visibility of the enterprise itself, expand the amount of possession in the market, and improve competitiveness in the peer. This article try to break the routine of the previous research, it does not want to make a fuss from the motivation of looking for cross-listing abroad, but it committed to find a new breakthrough point of the cross-listing on overseas, so this article intend to make the quality of accounting information as the starting point to study Chinese enterprises cross-listing in the domestic A-share market and overseas markets can enhance the quality of accounting information or not, and the specific path. So the empirical part of the article consists of two parts, one is the main assumptions about whether overseas cross-listing can improve the quality of corporate accounting information, the other one is sub-assumptions about the specific upgrade path. In sub-assumptions, the paper organized three sub-hypotheses to test the upgrade path. Through one main assumption and three sub-assumptions in empirical analysis, this article wants to draw the final conclusion and give the corresponding policy recommendations.The processing of the sample, the author find the enterprises which have cross-listed background in the2001-2010decade by CSMAR database, and find the matching enterprises from the property of industry and year-total assets, then constructed the quality of the information as the dependent variable, whether cross-listing as the function of the variable, we use STATA10.0software to regress. The regression results on the answer to this question is yes, that is:compared to non-cross-listed companies, the enterprises of overseas cross-listing has higher quality of accounting information.Subsequently, this article from the three aspects, that is the institutional environment, corporate governance and market constraints to further explore overseas cross-listing of the channels through which to improve the quality of corporate accounting information. Similarly, using the above samples, we construct three functions to test the establishment of the three paths or not. The first function is the quality of the information of overseas cross-listing companies as independent variables, the punishment of the regulatory agencies as the dependent variable, in order to test a stringent system of overseas cross-listing environment can enhance the quality of accounting information, the research results showed that, overseas cross-listing of the company the worse the quality of the information, the more vulnerable to the punishment of regulatory bodies, therefore, the first path to improve the quality of the information to be confirmed-a good system.This article does not change the nature of business ownership, board structure, and supplies some policy recommendations for listed companies to improve the quality of information from the perspective of institutional change. This article also riches in the literature of overseas cross-listing and quality of the information. In fact boils down to is the hope that Chinese enterprises through to the more mature overseas market for listing, to nature our domestic capital market to obtain a more robust development, only the domestic capital market is more mature, closer to the level of developed countries in order to better respond to the global financial and economic crisis. The moment the existence of some serious inflation, high prices, prices sky rocketing variety of economic phenomena in the final analysis is the overall economic development and economic system, so to develop their own economic needs of experiences from abroad, but also to integration of the law to fight to create for their own development.