Analysis On Agency Cost Of Companies Cross-listed From A-share Market To H-share Market

Since the1980s, cross-listing gradually become an important phenomenon in the global capital market. Many academics have studied its agency cost, and they have constructed a mature theoretical basis. In China, much more companies cross listed from H share market to A share market. There are many differences between such pattern and foreign mainstream cross-listing in the path selection. The level of returned companies’ agency cost is worth to probe. In addition, many companies listed in Hong Kong have not been returned to the mainland capital market. The research on cross-listings’ agency cost level can give these enterprises certain reference and guidance. It follows that the research on cross-listings’ agency cost level has high theoretical value and practical value.About research methods, the paper uses existing theories flexibly to analyze returned companies’ agency cost level and put forward the hypothesis. In order to illustrate the validity of the hypothesis, the paper uses the empirical method to verify them.About analysis angle, the paper firstly chooses returned enterprises and mainland companies which only issued A shares as the research objects to explain the effect of cross-listing on agent costs. Subsequently, in order to examine returned enterprises’ agency cost level, the paper studies the agency cost level before and after their cross-listing to observes whether there are significant differences between them.Regarding the framework, the paper firstly sorts theories related to cross-listing and agency cost. Combined with the government leading properties of "first H after A" in the path choice, the paper flexibly uses existing theories to analyze returned companies’ agency cost level, and verifies the theoretical analysis hypothesis by the empirical method. Finally, the paper summarizes conclusions and puts forward the suggestion, and prospects the follow-up research. Concretely, this paper includes the following six parts:Part Ⅰ:Introduction. This part introduces the research background and significance, interprets the research ideas, presents research framework, and points out the innovations.Part Ⅱ:Related concepts and literatures. This part defines the related concepts, reviews domestic and foreign literature.Part Ⅲ:Theoretical analysis on agency cost level of returned companies. This part expounds the theoretical basis. Combined with the particularity of "first H after A" in the path choice, the paper flexibly uses existing theories to analyze returned companies’ agency cost level, and puts forward the hypothesis.Part Ⅳ:Empirical analysis on agency cost level of returned companies. In this part, the paper uses the empirical method to verify the hypothesis.Part Ⅴ:Conclusions and prospect. In this part, paper summarizes the conclusion, puts forward reasonable suggestions to investors, enterprises, government departments. Then indicates the defects, and prospects the trend of cross-listing in our country and the follow-up research.