| In recent years, the number of domestic enterprises which chose to go overseassecurities markets for listing is increasing. The Hong Kong Stock Exchange is the majorchoice of overseas-listed companies in our country. According to statistics, a total of82companies in China are "A+H" cross-listing till December2012. Cross-listing in China isgradually on the rise, and the government is also committed to promoting mainlandcompanies listed in Hong Kong. However, the research of cross-listing in China is still notenough, especially in the effect of cross-listing on corporate governance.This paper uses the cross-listed companies in the period2008-2010as sample, andelects non-cross-listed companies in the same industry and similar asset scale. It analyzesthe effect of cross-listing on corporate governance, and takes an empirical research on therelationship between the level of controlling shareholder’s embezzlement of listedcompany’s funds, the cash dividend payment level, the degree of independence ofdirectors and the cross-listed companies. The study found that the cross-listing have apositive effect on corporate governance which mainly reflected in: the level of controllingshareholder’s embezzlement of listed company’s funds of cross-listed companies issignificantly lower than that of non-cross-listed companies; the cash dividend paymentlevel of the cross-listed companies is higher than that of non-cross-listed companies; theproportion of the independent directors of the board of cross-listed companies is slightlyhigher than that of non-cross-listed companies; the sensitivity of managerial annual cashcompensation to firm performance of cross-listed companies is significantly lower thanthat of non-cross-listed companies.The above results show that the combined effect of the "A+H" cross-listing on listedcompanies from both external governance and internal governance, so as to improve thecorporate governance of listed companies and to protect the minority shareholders. |
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