The Time Effects Research On The Value Of HKEx Listed Companies

The value of the company is the core content of the corporate finance, and is oneof the most important concepts in the financial subjects. It is not only the mostconcerned indicator to the company managers and investors, but also an importantaspect of scientific research for scholars all over the word. Previous research on thevalue of the company has made a lot of important results, like Life Cycle Theory andMM theorem. These studies are mostly concentrated in the measure of the value ofthe company and the cause that affect the value of the company. One of the features ofthe value of the company is volatility, which was already proved by the theoreticalresearch and stylized facts. However, the perspective of this paper is that if the valueof the company will change with the listing age after rule out the influence of externalfactors. If so, what will it be? In this paper, I will do some empirical research. Theresult of the study has not only theoretical, but also certain practical significance.Regardless of the company’s decision-makers, investors, market regulators, this paperwill be able to provide a more scientific basis and more reliable data support.This paper use the whole sample of the HKEx listed companies value index date.The reason that why chose this sample is that Hong Kong stock market has open,competitive trading environment, sound regulatory mechanisms and pro-investmenttax policy. All of these have made the Hong Kong securities market more close to theefficient market. The econometric method of the study is panel data model analysis.The interpreted variable is the listed companies’ value indexes and it’s appropriateadjustments. The explanatory variables are the selected companies’ listed agemeasured by quarterly and it’s square, cubic and fourth power.To exclude the interference of various external environmental factors and ensurethe robustness of the empirical results, this paper intends to two data processingmethods to study the value of the listed companies. one is based on different IPO time.This paper will do all regression to the full sample that listed in Hong Kong from 2000to2009, using panel data model. The other one is based on the length of thedifferent listed time. We’ll summarize the tends of the value of the company by doingsome regressions to the all companies that listed for three to ten years. We’ll do theempirical analysis from three aspects. The first is that use every index data for paneldata model regression directly. The second is that use panel data model after someappropriate adjustments to the value indicators. The last is robustness test of themarket value trends.The empirical result shows that the regression equation contains only the squaredterm can best match for the actual movement of the value of the company. And thenumber of positive quadratic coefficient regression results is in the vast majority. Thismeans that the variation of the value of the listed companies subject to a positivecoefficient secondary distribution. After the company listing, it’s value will not riseimmediately, but shows a downward trend in a certain extent and then rise up. Thisshoes a positive U-shaped trend. In addition, the affect to the value of the company byexternal environment is very sensitive. Choose a favorable time to list (listed in afavorable external condition) is very important to the development of the company.