Impact On The Quality Of Accounti NG Information Of Cross-Listing

With global economic integration, an increasing number of domestic enterprises choose to be listed in both Shanghai or Shenzhen Stock Exchange and the capital markets in developed countries or regions, such as Hong Kong Special Administrative Region (Hong Kong), America, Singapore and England. Compared with the non-cross-listed enterprises, the cross-listed enterprises, whose number increases greatly, feature group characteristic in such aspects as the corporate philosophy, governance and earnings management, which, to some extent, reflects the characteristics of domestic capital market. This paper intends to analyze the quality comparison of accounting information between A+H-Share cross-listed enterprises and A-Share enterprises from two perspectives. While in contrast the A+B-share and A-share accounting information quality under the same market conditions difference.Firstly, divide all the samples into groups; evaluate and contrastively analyze the accounting conservatism for the A+H-Share cross-listed enterprises and A-Share cross-listed enterprises,A+B-Share-share cross-listed enterprise and A-Share cross-listed enterprises. Then, evaluate and contrastively analyze the earnings management status for the A+H-Share cross-listed enterprises and A-Share enterprises,A+B-Share cross-listed enterprises and A-Share enterprises. The above content shows that progress achieved by our country in capital market for the past few years and accordingly whether the cross listing action can actually improve the accounting information quality of the enterprises can be verified.Firstly, this paper reviews and summarizes the relevant literatures; analyzes the economic consequences resulting from cross listing action in details; tease out the implications of accounting information quality. In addition, with comparing the legal system and regulatory environment in Chinese Mainland and Hong Kong, it puts forward four assumptions:(1) compared with A-Share enterprises, the A+H-Share cross-listed enterprises may provide sounder accounting information timely; (2) compared with A-Share enterprises, the A+H-Share cross-listed enterprises may provide higher accounting earnings quality. (3)compared with A-Share enterprises, the A+B-Share cross-listed enterprises may provide sounder accounting information timely; (4) compared with A-Share enterprises, the A+B-Share cross-listed enterprises may provide higher accounting earnings quality.Secondly, the paper selects the continuously cross-listed A+H-Share enterprises during 2011-2014 and determines the A+H-Share cross-listed enterprise samples after basic filtration; fixes the same number of A-Share cross-listed enterprise samples by one-to-one matching principle. Then, the paper establishes function model based on the existing researches;conducts statistics and regression for the filtered sample data with spss software and excel. Consequently, the conclusion is, compared with A-Share enterprises, the A+H-Share cross-listed enterprises provide sounder accounting information timely and higher accounting earnings quality.;compared with A+B-Share enterprises, the A-Share enterprises provide sounder accounting information timely and higher accounting earnings quality.The result made from Assumption I shows that compared with A-Share enterprises, the A+H-Share enterprises provide sounder accounting information timely and higher accounting conservatism as under the stricter legal environment and improved system.Besides, the result made from Assumption II shows that compared with A-Share enterprises, the A+H-Share enterprises provide higher accounting earnings quality. That is, A+H-Share cross listing action in our country can effectively prevent the management of listed enterprises from manipulating the earnings; improve the quality of disclosed accounting information; enhance the protection to the investors. The result made from Assumption â…¢ and â…£ shows that compared with A+B-Share enterprises,the A Share enterprises provide sounder accounting information timely, higher accouting conservatism and provide higher accounting earnings quality.To sum up, depending on the research process and conclusion, firstly, the paper provides constructive advisory opinions as for the issue that whether our enterprises choose cross listing. Secondly, it raises suggestions on corporate governance. Ultimately, it suggests the investors should learn relevant professional knowledge, keep rational awareness and make reasonable investment accordingly.