Cross-listing,Stock Price Informativeness And Investment Efficiency

Cross-listing refers to behavior that the same company listed in two or more securities market,and usually refers to behavior that the same company listed in domestic and overseas.Since 1970 s,more and more companies have being cross-listing companies in the world,and the phenomenon of cross-listing have becoming more and more common.As an important symbol of global financingial integration,cross-listing has become the focus of academic research.The author studies the motivation of cross listing from the perspective of market segmentation,investor awareness,financing constraints,investor protection,information disclosure and regulatory evasion,and forms a series of theoretical hypotheses.With the deepening of the study,Foucault and Gehrig(2006)found only that the view of financing is difficult to perfectly explain the cross-listing causes,and put forward to study the cross-listing motivation from the stock information point,namely “information channel theory”.The information channel theory reveals that the company can change the stock price information through cross-listing,and the change of stock price information can be used for the management of the company and come true Optimal allocation of enterprise resources.The essence of enterprise resource optimization is to reduce the inefficient investment and improve the investment efficiency.So far,foreign studies have found the existence of information channels,and the domestic research is mainly the impact of cross-listing on investment efficiency from the perspective of investor protection,and the research of cross-listing information channel is less.Therefore,this paper on the basis of domestic and international research,based on the information channel theory,combined with the difference between cross listed companies and mainland listed companies to study the impact of cross listing for investment efficiency from the perspective of stock price information.The paper examine the A+H cross-listed companies pass through information channels to improve the information content of stock price,whether these companies can improve corporate governance,and improve the investment efficiency,which has important theoretical and practical significance.Based on the information asymmetry theory,principal-agent theory,theory of constraints,the channels of information theory,this paper analysis research about the theory of cross listing and information content of stock price,stock price informativeness and investment efficiency and the relationship of cross-listing,stock price information content and the investment efficiency.Based on the above theoretical research,this paper propose the corresponding research hypothesis.In the part of empirical research,this paper adopted 249 observations of 66 A+H companies from 2010 to 2015 year as the research sample,and the data of 13010 observations of 2144 pure A shares of listed companies as the control group,using fixed effect model to analyze the impact of cross-listing on the stock price informativeness and stock price informativeness on the investment efficiency,and further research about information channels of cross listing,stock price informativeness and investment efficiency.The results show that cross-isting can improve the efficiency of stock market by increasing the stock price informativeness and improving the degree of information asymmetry between investors and companies.Cross-listing decision of enterprises play an important role in improving the listed company information channels of investment decision for the company's management,and help to improve the behavior of overinvestment and underinvestment of listed companies,improve the investment efficiency.The empirical results show that(1)these mainland enterprises through the A+H cross-listing can improve the stock price informativeness;(2)that information content of stock price increase can effectively alleviate the overinvestment behavior of enterprises,and improve investment efficiency;(3)that information content of stock price increase can effectively alleviate the enterprise underinvestment behavior,and improve investment efficiency;(4)A+H cross-listing can alleviate the overinvestment behavior of enterprises and improve investment efficiency through improving the stock price informativeness.(5)A+H cross-listing can alleviate the underinvestment behavior of enterprises and improve investment efficiency through improving the stock price informativeness.From the above conclusions,we can find that the mainland enterprises can improve the efficiency of the stock market after the A+H cross listing.