The Evolution And Management Strategy Of Enterprises Listed Overseas’ Legitimacy

Companies listed abroad is a very complicated and lengthy process, full of all kinds of uncertain factors led to many risks and crisis to many companies in the process of overseas listing, many companies listed on overseas was eventually failed because of losing its legitimacy. And with the improving of the overall strength of China, the Chinese enterprise internationalization has become a trend and inevitable, but the process of Chinese enterprise internationalization is not as good as people think, instead Chinese enterprises in the internationalization process encountered many setbacks. Enterprise internationalization has a variety of forms, overseas listing constitute an important part of enterprise internationalization, research of the legitimacy of Chinese enterprises overseas listing will help Chinese enterprises to enter international capital market more smoothly.This article main research the evolution of its legitimacy and management strategy of Chinese companies which is from governance environment index low country of to governance environment index of high country for overseas listing. In this paper, through theoretical deduction and select a typical Chinese companies listed overseas as a case study, analysis the problem of the legitimacy of the Chinese enterprises overseas listing. Found that Companies from low governance environment index country to high governance environment index country for overseas listed will experience a period of special safeguard in the stage of establishing a legitimacy. this period is not due to the enterprise’s business performance, but due to institutional distance.Overseas listed companies will be different at each stage of overseas listing of management strategy. In setting up stage must first binding legal regulating of the overseas markets required responsibilities and obligations, this helps overseas listing enterprises rapidly promote the legitimacy of the enterprise in the establishment stage; In order to make the enterprise smoothly forward special defend stage, overseas listing enterprises need to strengthen regulation binding and release more investors protection information; legitimacy In maintain stage, enterprise have the ability to resist external risk and threat; Legitimacy in development stage, the enterprise is easier to enter a period of rapid development, strengthen enterprise business; Defending stage only companies to adopt more measures to protect investors, that can help enterprises through defending stage, restore its legitimacy more smoothly.