Cross-listing, Managerial Power And Corporate Performance

Cross-listing has been one of the most fascinating aspects of financialglobalization in the last two decades. With the number of cross-listings corporateincreasing, cross-listings have been hot topics. Scholars mainly focus on thecross-listing motivation, the cross-listing destination markets, the theory ofcross-listing, and the relationship between cross-listing and corporate governance. Butthe research on the mutual relations among cross-listing, managerial power andcorporate performance from the same country is less. Based on this, we focus on themutual relations among cross-listing, managerial power and corporate performance.Because cross-listing have effect on internal governance, we add the internalgovernance in this study.In specifically, firstly, this paper makes literature review of the relationshipbetween cross listing and corporate performance, the relationship between managerialpower, internal governance and corporate performance. This laid a theoreticalfoundation for further study. Then, this paper establish empirical model and selectsthe data of A+H listed corporate and control group that only listed on A. Finally, thispaper summarizes the results and makes some recommendations.The results of this study show that:(1) The cross-listing have negative obviousinfluence on corporate performance.(2) In A+H listed corporate, there is significantnegative correlation between comprehensive managerial power and corporateperformance. Managerial duality, managerial education, managerial centrality andmanagerial tenure have no obvious influence on corporate performance. There issignificantly negative relationship between managerial holdings and corporateperformance.(3) In A+H listed corporate, internal governance have influence onmanagerial power except managerial education.(4) The internal governance has someinfluences on managerial power--corporate performance sensitivity.(5) Cross-listinghas some influences on the relationship between managerial power and corporateperformance. In A listed corporate, The cross-listing have positive obvious influenceon corporate performance. The relationship between different variables of managerialpower and corporate performance in A listed corporate is different with A+H listedcorporate. In A listed corporate, internal corporate have no effect on managerial tenure, but the largest shareholder has influence on other variables of managerialpower. In additional, the influence of internal governance on the relationship betweenmanagerial power and corporate performance is different between A+H listedcorporate and A listed corporate.