Research On The Impact Of Cross-listing To Minority Shareholders Protection

Minority shareholders are vulnerable groups of many investors in capital markets. According to the principal-agent theory and information asymmetry theory, the interests of minority shareholders are often occupied by management and major shareholders. Protecting minority shareholders’ interests is closely related to the degree of perfect capital market. Developed capital markets can protect the interests of minority shareholders better. Cross-listing refers to an enterprise list at the same time by two or more equity capital markets. Cross-listing for the enterprise provides a more strict law environment and the environmental information disclosure system. These constraints can promote enterprises to improve their own to protect the interests of minority shareholders.It needs further research that the way how Cross-listing impacts the protection of minority shareholders. Through the theoretical analysis, it can be found that cross-listing behavior influences the enterprise’s internal corporate governance, information disclosure level, law environment and dividend payments. The impacting path of minority shareholders protection is generally from the environment improve level to capital market level and to enterprise level. Selected data of cross-listing companies in2007-2011as the research object, with the aid of Eviews7.2statistical software for data of multiple linear regressions, compared the cross-listings of listed companies in our country before and after cross-listing level of minority shareholders protection effect. And use non cross-listing companies’ data in2007-2011data in comparison, studies on the cross-listing protective effect of minority shareholders. Results show that:1. Compared with the enterprise cross listed before, after cross-listing of listed companies, which minority shareholders protection effect obviously improved.2. Compared with the cross-listing companies choose the cross-listing companies can better protect the minority shareholders.3. Choose the cross-listing companies themselves have good level of minority shareholder protection and superior quality.According to the theoretical analysis and empirical analysis conclusion, put forward policy recommendations to improve the minority shareholder protection. Think in terms of minority shareholders protection, enterprises should actively improve their strength and relevant regulators should strengthen the complete system and regulation, minority shareholders should be rational towards investment.