A+H Cross-listing Research On The Influence Of The Accounting Information Transparency

With the fast pace of global integration and financial liberalization, domesticcapital market has been unable to meet the financing needs of some enterprises. Inorder to expand the scale of financing and financing range, some companies set theirsights on the international capital markets, one of the most commonly way iscross-listing at home and abroad. However, companies who choose cross-listing havedifferent motivations. Some of them are for the sake of cross-border financing. Someof them are intend to satisfy certain commercial incentives, such as improving thebrand awareness of enterprises, expanding market shares, enhancing thecompetitiveness of enterprises. Then some companies also want to improve the levelof corporate governance to improve enterprise value. The text does not use theroutines of cross-listing in the study of motivation just like before, but to find out theimpact of cross-listing in the enterprises. This text selects the accounting informationtransparency as a breakthrough point to study whether cross-listing has brought thepromotion of enterprise’s accounting information transparency, and then to raise thelevel of protection of investors. This article mainly aims at Hong Kong to cross A+Hshare companies listed, analysis the accounting information transparency of thecross-listing and pure A-share listing companies, combine domestic stock market andthe Hong Kong stock market, to research the protection of the investors.First of all, this paper reviews and summarizes the cross-listing and accountinginformation transparency of others literatures, then analyzes the reason ofcross-listing, cadres the definition of the accounting information transparency. On thebasis of the different between legal environment and institutional background of themainland and Hong Kong, this text includes a hypothesis about cross-listingcompanies have a higher accounting information transparency than pure A-sharecompanies.Secondly, this text selects all the A+H shares cross listed companies from2009to2012, and then A+H cross-listings samples. This text accords to the basic principles to match pure a-share samples. In reference to the constructor model on thebasis of existing research, using SPSS19.0software for the selected samplesregression, it is concluded that the proposed assumption is consistent, that is to say,the cross-listing companies have a higher accounting information transparency thanpure A-share companies.The empirical results show that A+H cross-listing companies provide moretimely and more robust accounting information than pure A-share companies.Because in the strict legal environment and perfect system background in Hong Kongregulators demand for higher quality of accounting information quality than themainland markets. In addition, the validation of the third hypothesis of this text canshow that compared with the pure A-share listed companies, the A+H sharescross-listing companies can inhibit managers to manipulate accounting surplus, andthen to improve the enterprise accounting information transparency. That is to say A+H share cross-listing in China can effectively restrain the managers of listedcompanies to manipulate accounting surplus, then can improve the quality ofaccounting information disclosure to improve the level of investor protection.Through the combination of theoretical analysis and empirical test, at the end ofthe paper the author puts forward some suggestions to improve the domestic capitalmarkets: First of all, suggest the relevant government departments in our countrycontinue to strengthen our national securities markets, improve the legal system, andintensify law enforcement and punishment degree. Secondly, it is suggested that listedcompanies improve the corporate governance of enterprises from the more of this.Again, it is recommended that the intermediary institutions to strengthen their ownculture and improve their professional level, make a more accurate analysis. Finally,recommends that investors keep the mind of rational investment, learn professionalknowledge actively.