The Impact On The Enterprise Value Of Overseas Listing

Ever since1990s, an increasing number of companies set foot on the route of internationalization by financing through overseas listing. Thanks to overseas listing, they enhanced comprehensive operating performance, reduced capital cost, improved corporate governance structure, and as a result, increased corporation value.Based on DCF model and Merton model, this paper establishes a completed index system to investigate corporation value and conducts detailed statistical or econometrical analysis of every factor in this system. Using principal component analysis, this study confirms that comprehensive operating performance is promoted after overseas listing. By innovatively constructing A+H stock index and applying GARCH (1,1) model, this paper confirms that after overseas listing, company may confront with great risk of hostile takeover during times of low stock price. Statistical induction shows that capital cost is also reduced. To sum up, this paper comes to the conclusion that overseas listing contributes to increase of corporate value.At last, this paper concludes the results of theoretical analysis, empirical analysis and case analysis completely and comprehensively, and proposes practical suggestions for corporations, regulators and investors.