Cross-listing,Audit Quality And Corporate Investment

This article selected background of cross-listing in China,explores the business investment under different institutional environment impact,and the differences of produce environmental factors,and attempts to further explore the way of market environment affect corporate investment behavior.When exploring on cross-listings environment,for distinguish further specific difference between Chinese mainland market and Hong Kong markets,we choose the market participants in the market microstructure to substitute the difference on environment.In order to further explore the specific way of the influence,we do the research from the perspective of institutional investor's regulation and market signals released of institutional investors,considering the audit's responsibility for supervising company information and promoting the quality of market information.At the same time,we have known audit itself will be affected by the market environment,and the audit quality also affects the company's investment efficiency.So we tried to explain the cross-listings environment how to impact the corporate investment behavior based on the audit.Come to a conclusion: 1.Cross-listings and non-cross listed companies' investment behavior is different,and the institutional investors of two markets can largely explain such differences;2.Relative to the Chinese mainland market,the Hong Kong market environment has good regulating role in the allocation of resources.It can effectively improve the efficiency of the company asset allocation,and avoid the low efficiency of investment,improve the utilization efficiency of resources.3.Market participants-institutional investors,can effectively explain difference in the company investment behavior that caused by cross-listings environment.What's more,we find that the audit quality is the important way of the cross-listings environment impact the corporate investment behavior.Based on this study.We put forward that we should strengthen the construction of laws and regulations,guide the healthy market investment.Then,we should strengthen the supervision of Chinese mainland institutional investors,accelerate the growth of domestic institutional investors and enhance the level of specialization.The last,we should accelerate the internationalization of RMB,carry out offshore RMB financial market step by step,opening of the financial market gradually,introduce overseas professional financial institutions to Chinese mainland market operation;That will help develop and improve the Chinese capital market,improve the supply quality,promote the reform of the structure of Chinese supply side.