Equity Ownership And The Listing Model Bias

As of Dec.312013, the number of Chinese mainland firms that listed in HongKong, Singapore and America is296,147and177respectively. However, a lot ofproblems and risks are exposed on the Chinese firms during the process of going out.A typical one is that many China concept stocks have been attacked by short-sellerssince2010. How to explain the phenomenon and avoid relative risk? In themulti-level market system of USA, a company could become public by means of IPO(initial public offering) or reverse merger. On the one hand the two different methodsdiffer greatly in terms of costs and effects. On the other hand, the capital is thepersonality performance of the capital sponsor, and different shareowners may havedifferent preference for the two listing methods. This thesis is an effort to investigatethe foreign listing method bias form the point of view of ownership structure, whichmay provide some reference significance.The study adopts the China concept stocks that listed in the American capitalmarket as our sample. It introduces the institutional environment of the US capitalmarket and makes qualitative analysis on how the equity structure of a companywould influence the choice of means to list itself oversea. By doing data collectingand processing, building Logit Regressing Model and implementing regressionanalysis on the176samples, the study finds significant evidence to set forth theconclusions. It is found that, financial investors are more likely to choose IPOcompared with non-financial investors, venture capital funds are more likely tochoose IPO compared with other financial investors, foreign industrial investors aremore likely to choose IPO compared with domestic industrial investors, and the moreequity share the investor take, the more likelihood it shows.