Empirical Study On The Influence Of Corporate Value Because Of The Return To A Share From Overseas

With the development of financial globalization, more and more Chinese companies arechoosing to enter the international stock markets for financing. At the same time, the rapiddevelopment of China’s economy and the rapid expansion of the mainland stock market hasattracted many overseas-listed Chinese companies to return to the domestic market in recentyears. Overseas listed companies return to A-share market has becoming a noticeablephenomenon, it is just in this background that the paper carried on a systematic study on theinfluence of the enterprise value of the overseas listed company to return to A-share market.This paper takes a comprehensive application of market segmentation theory, liquiditypremium theory, signal transmission theory and other classical economic theory, uses the methodof significance test, descriptive statistics, principal component analysis, the article makes anempirical analysis of the impact on enterprise value of the overseas listed company to return toA-share market from the view of influence mechanism.First, this paper summarized the motivations and the impacts of overseas listed companiesto return to A-shares. Second, take Hong Kong market as an example to describe the presentsituation and regular pattern of those overseas listed companies which return to A-shares. Then,make a normative analysis of the impact on the enterprise value of overseas listed companies,deduct the value impact mechanism of return to A-shares companies. Finally, analyze therelevant data and inspection, find out the key factors that affect enterprise value, puts forward theideas to enhance corporate value and policy recommendations.Through the above research, the demonstration results of this article show that overseaslisted companies return to A-shares did not promote the enterprise’s value. The main reason isthat the economic policies of the Chinese a-share market, trading mechanism and the allocationof resources still have many shortcomings, which have caused some obstacles in takingadvantages of the company’s capital cost, transaction cost and dividend distribution policy andfinancing cost after returning to A-shares. This conclusion has significant reference value forimproving the environment of our capital market, promoting the value of overseas listedcompanies, enhancing the confidence of investors.