Research On The Motivation Of Chinese Companies Listed Overseas

With the gradual deepening of economic globalization, the globalization of capital markets has been on an accelerated path in the past twenty years. Enterprises with shares listed on exchanges outside their home countries can get not only funding needs, but also enhance their reputation in a wider range. In addition, the overseas listings of events also bring many other benefits. However, enterprises listed overseas activities will bring some additional risk. Activities listed overseas have been very frequently in Western countries, while Chinese cross-listing activities only began to rise from the1990s, at this stage it is only in its infancy period. Good theory to make a good guide for the development of practice, there is the presence of overseas-listed activities, it is necessary for the overseas activities of motivation in-depth study. The theoretical researches that foreign scholars have made are outstanding. There are kinds of hypothesis that are in the mainstream, such as the hypothesis that there is a segmentation in the markets, liquidity hypothesis, investors cognitive hypothesis, the signal hypothesis, access to capital hypothesis and investor protection hypothesis and other hypotheses. These hypothesis about motivates for overseas listing have formed a complete system. The theoretical studies in these areas that Chinese scholars have made are still relatively rare, and mostly study on the basis of foreign advanced a hypothesis, combined with their own special case empirical research section. The establishment of the proposed hypothesis is the lack of originality. This may has something with that the practice of Chinese enterprises listed overseas development activities not long. As the continuous development in recent years, Chinese enterprises listed overseas activities is booming, why Chinese companies chose to list in foreign countries and these decisions are how to link with their characteristics is still need our research.After analysis, we found that in the past for domestic enterprises listed overseas research activities are not too many and most of them are focus on the market reaction after the cross-listing. The study on motivates to cross-listing are mainly focus on a certain overseas markets, such as Hong Kong market research. There is a lack of a comprehensive analysis about all kinds of oversea markets. Based on previous results, this paper studies on the basis of whether the cross-listing is go through with a deposit receipt. In addition, I have study the different motivates on different oversea exchanges. Forewarned is forearmed, without prejudging the waste listed overseas activities as well. In an emerging market, Chinese companies listed overseas development which still exist initial learning phase, the implementation of the overseas listing practice at this stage, the more necessary in the planning stage to be listed as a complete and thoughtful. The theoretical study on motivates of cross-listing is very important to our Chinese companies, which is the main contents of this paper. Only companies listed overseas have a deep understanding of motivations of cross-listing, can a company may operate more reasonably in the future overseas listing activities. For a domestic enterprise, regardless of whether an overseas listing plan a company has, through these theoretical studies, it will find a more suitable way of financing its business development. On the other hand, the theoretical study on Chinese enterprises listed overseas can provide some advices for the establishment of our domestic capital market. For these reasons this article mainly studies the motivations of cross-listings that Chinese enterprises have made.There are five chapters which are applied to the empirical analysis in the fourth chapter, this article reveals that significant demands for external capital motivate higher-levered a high growth firm to list abroad and the results have some guiding significance.