Overseas Listing For China's Corporate Governance Structure And Governance Impact Study

In the context of global economic integration and stock market internationalization, companies from one country choose to go to another countries’ capital market seeking for financing has become nothing new recently. More and more people support the state-owned and private companies in booming emerging economies going public in the well-developed capital markets. On one hand, overseas listing provides companies funds and platforms for their future growth; on the other hand, more stringent regulatory requirements bring new challenges to the corporate governance. Thus, people can’t help to think what kind of impact would the overseas listing exert on the corporate governance structure of companies in China?Centered on the above research topic, this paper first analyzes the background and current situation of Chinese companies listed overseas. A large number of vivid and detailed data shows the layout of the current Chinese companies in the global capital markets. Then we study the impact of overseas listing on Chinese corporate governance structure from three aspects, namely, the theoretical analysis, empirical analysis and case studies.This paper attempts to review relative theories of the overseas listing and corporate governance and analyzes the relationship between the overseas listing and corporate governance. The research shows that overseas listing improves the corporate governance level from at least the following four aspects, the degree of information disclosure, the level of related party transactions, the quality of accounting information and the company’s capital structure.With the analysis of historical data, we compare the similarities and differences with regard to the market efficiency between the mainland China market and Hong Kong capital market. We also compare the level of corporate governance of companies listed overseas and domestic market through the of corporate governance variables.This paper analyzed two typical companies listed overseas in support of the previous conclusion. The company that operates legally and responsible for investors in the overseas capital market will grow rapidly. The company that lack of awareness of honesty and occupies the interest of shareholders in the foreign market will be casted by the market soon or later.