Study On The Influence Of A+h Cross-listing On The Company's Operating Performance

Cross-listing,known as dual listing or cross-border listing,that is a company who appears on the market in the domestic and foreign stock exchange at the same time.With the deepening of economic globalization,the capital market gradually moves into the process of global integration,and the market liquidity increases progressively,more and more investors look at the global market.In order to further expand the financing channels,cross-listing arises at the historic moment.The World Federation of Exchanges published the results showed that at the end of 2008,the London Stock Exchange has reached 681 overseas listed companies,accounting for 22.0% of the total number of listed companies,and the stock trading amount of the foreign companies accounts for 30.24% of the total amount of transactions.The number of listed companies of the New York Stock Exchange ranked second in the world,accounting for 13.78%of the exchange company,which reached 415.In the domestic since 1993,the first company in mainland China Tsingtao Brewery listed in Hong Kong,opened the prelude to overseas listing of Chinese companies.And by 2012,A + H cross listed companies had already reached 82.However,the findings of empirical research do not confirm that the company's performance will be improved after cross-listing.On the contrary,from the conclusion of foreign research,the company's business performance showed a downward trend since the internal and external environment changed after cross-listing.Academia and industry focus on the issue that how to explain the decline of the company's business performance after cross-listing and seek to the solution of this problem.For this,the article is based on sample data of the Chinese A-share market,setting up a control group.The article tests the difference between the performance of the cross-listed and non-cross-listed companies by the propensity score matching(PSM),and explores the mechanism of cross-listing affecting the performance of the company by the structural equation modeling.In particular,the research of this paper is mainly from three aspects.Firstly,the sample data is matched by the propensity score matching(PSM)which has not been used by theprevious scholars,and then the T test of the sample mean is carried out.Compare the companies in different types heavily,so as to obtain the company's business performance conditions in different categories.Secondly,study from the equity characteristics,capital structure and other aspects,so as to obtain the adjustment factors which have significant impact,and then gain the internal governance factors that affect the performance of the company after cross-listing.At last,explore the path distribution for the diversification of the performance from the equity characteristics,LEV structure,and asset flow after cross-listing,combining with the relevant research basis,so as to seek ways to improve the performance.Based on the empirical results,the following conclusions are obtained:(1)Compared with the non-cross-listed companies,the company's business performance decreased after the A + H cross-listing,and the degree of equity concentration and asset-liability levels strengthened heavily,with the asset liquidity levels decreased significantly.(2)The relationship can be adjusted significantly between cross-listing and business performance with equity characteristics and capital structure,in which the nature of equity,equity checks and balances and cash flow can weaken the declined performance obviously after the cross-listing,and the increase in LEV ratio can strengthen the trend that the performance drop after cross-listing.(3)Cross-listing affects the company's business performance through the LEV structure,asset flow,equity structure and other path.Among them,LEV structure and asset flow is the main impact path,but the effect of equity control path is limited.Based on the analysis of the full-text theory and literature and the results of empirical research,this paper proposes some recommendations as follows:(1)Improve and optimize the equity structure of the listed companies,and increase the proportion of circulating shares,and promote the decentralization of the company's equity.At the same time,in order to promote the internalization of shares within the listed company,the strategic investors,venture capitalists and other entities can be introduced to the listed companies.(2)The company should be reasonable to adjust the LEV financing ratio,so as to avoid excessive leverage risk.And the company also should hold advisable flowing assets for contingencies.