Research On The Motivation And Aftermarket Performance Of Chinese Private Enterprises Listed Overseas

In recent years, Chinese private enterprises present a rapid development, and have become an important component of the national economy. However, most of the private enterprises in China have been facing serious difficulties in financing in the process of development. On the one hand, the private enterprises are difficult to obtain loans from banks because of the small scale, imperfect governance structure and the credit being deficient in guarantees. On the other, due to the restriction of the current stock market system, the direct financing channel for private enterprises is not available. Under this situation, more and more private enterprises have chosen to enter the international capital markets.Since1999, Qiao Xing Universal Resources, INC. successfully landed on NASDAQ, overseas listing of Chinese private enterprises have been going on for over a decade. There have been more than700private enterprises landed overseas capital markets. Places of listing include Hong Kong, New York, Singapore, London, Frankfurt, Tokyo and Seoul. Industries of listing include chemical, energy, machinery manufacturing, pharmaceutical, high-tech, network, e-commerce and so on. Chinese private enterprises set off "China concept" movement in the international capital markets.However, at present, Chinese scholars have only studied on the descriptive phase of the listed ways and listed location of overseas listing problems, lack of systematic theory of the status quo analysis and empirical research. As an emerging market, the reason of the motive and effect about Chinese private enterprises overseas listing is complicated. Why do private enterprises choose overseas listing? And what effect it will bring aftermarket? In order to make Chinese private enterprises overseas listing more rationally and smoothly, this paper attempts to analyze the theory and present situation, researches on the diversity motivation and performance aftermarket, and provides empirical conclusion and suggestions. This paper is divided into6parts.The first chapter is introduction. It introduces the background and significance of this paper, the main contents, study framework, study definitions and the innovation of the study.The second chapter is literature reviews. From the points of motivation and performance, this part reviews the relative literature about domestic and foreign private enterprises overseas listing, summarizes research situation and direction, extracts the existing viewpoints and methods, and based on this, puts forward the argument.The third chapter is to examine the present situation of overseas listing of Chinese private enterprises. Firstly this part introduces the four stages of overseas listing of the experience in private enterprises. Then it analyzes the characteristics of overseas listing, from listing way, listing place and listing industry by a large amount of statistical data. And at last, it points out the existing problems about the overseas listing of private enterprises.The fourth chapter is the analysis of the motivation of overseas listing of private enterprises. Firstly this part builds a mode that the internal needs and external environment work together to produce motives to explain the reasons of overseas listing. Then it practically analyzes the basic needs and developing needs, and the external environment of economic pressure, political unequal, financing restnctions, policy changes and other stakeholders of the private enterprises. Based on above, it gets conclusion in finance, commerce, corporate governance and policy parts of the motivation of private enterprises overseas listing.The fifth chapter is the empirical analysis of the aftermarket performance of overseas listing private enterprises. This part analyzes finance performance and stock market performance. For finance performance, it sets up a financial evaluation index system including profitability, capital structure, asset management ability and development ability four aspects to examine the changes before and after overseas listing of private enterprises. For stock market performance, it uses the method of event study and cumulative average abnormal returns CAR for index, measures the stock price changes after overseas listing for three vears.The sixth chapter is the research conclusion and suggestion. This part summarizes the study conclusion of the whole text and the limitations of this paper. And it puts forward relevant suggestions to the government and overseas listing private enterprises.The creative points of this paper are in three fields:(1) This paper uses Chinese private enterprises as the research object, collects a large amount of lasted data, and shows the real status quo of the overseas listing of Chinese private enterprises.(2) The research data of this paper includes the relevant data of the overseas listing of private enterprises in various ways, which makes up the statistical analysis blank at the moment.(3) For the scope of the study, this paper studies the finance performance and market reaction with financial indicators and cumulative abnormal returns index to expand the scope of the performance study of overseas listing private enterprises.