Comparative Research On Firm Growth Of Chinese Companies Listed At Home And Abroad

Judging from the number of IPO, Chinese companies’s large-scale IPO in the U.S. market was started from2006, reaching the peak in2010. Most Chinese companies listed in the United States are small and medium-sized private enterprises. Undeniable that the United States has a mature capital market, the rich layers of the market provide broad space for small and medium-sized private enterprises to finance. While China’s securities market has continued to reform. GEM was launched in2009, and insider trading was cracked down constantly in recent years, which greatly improved China’s Securities market. What’s more, the SEC audit storm erupted in2010, bringing the U.S. listed Chinese companies into winter. In this new situation, doing research on whether the behavior of the Chinese stocks listed on the United States promote business growth, and compared to companies listed in the domestic market, there is significantly different, is very necessary.This article analyzes the growth of the Chinese companies listed on U.S. exchanges and the growth of domestic companies listed in China firstly, and then discusses whether this two kind of growth are significantly different. If there is a significant difference, it may be advantageous to select the higher growth capital market. So if the growth of the Chinese companies listed in domestic is significantly lower than the Chinese companies listed in the United States, it means that the U.S. capital market is still a good choice for corporate financing. If the opposite results occur, it means that it is unwise to be listed in the U.S. capital market. Chinese companies should turn their attention to domestic capital market, considering their own situation.The paper selected46listed Chinese companies financing in the United States on January12009to2011as the first set of samples and46domestic listed enterprises of the same year listed and from the same industries to do the empirical test. The test results shows that there is the external financing of U.S. listed companies and domestic listed companies, the company’s growth there is a significant difference in the growth of the two samples. On the one hand, the growth of the first samples is significantly higher than that of the domestic listed companies. But the growth of the oversea listed companies is not due to behavior of financing from the U.S. capital market. On the contrary, this behavior damages the company’s growth. On the other hand, though the growth of the second samples is not as good as the first one, the behavior of financing in the domestic capital market improves the companies’growth greatly. In fact, the financing environment for Chinese companies in the United States is worse and worse. SEC audit storm influences most Chinese companies which listed in the United States. The American Securities and Exchange Commission Strengthens the IPO approval of Chinese companies. So the pre-listed companies should turn their attention to domestic capital market.