Research Of The Corporate Governance's Effects On Overseas Delisting Of Chinese Firms

Due to the time-saving for domestic listing,the financing for the larger global capital markets,and the promotion of international fame,more and more Chinese companies choose to overseas(such as the United States,Britain,Singapore and other regions)listed.At the same time,overseas listing of Chinese enterprises delisting phenomenon often occur.Data show that,2012-2013,2015-2016 years has occurred twice overseas listing of Chinese enterprises to withdraw from the market tide,which became a hot topic of social concern.Why Chinese listed companies will withdraw from the market? What factors affect the overseas listing of Chinese enterprises delisting? For listed companies to delisting the impact of factors,domestic and foreign scholars have also been studied.In this paper,we use Logistic model to control the listing place,the number of years in the city and the industry category,and control the number of stocks,total assets and other markets of the delisted companies and listed companies in the United States,London and Singapore in 2007-2015.The influence of corporate governance structure variables on the delisting behavior of listed companies is analyzed by empirical analysis,using the logistic model,comprehensively with the difference between voluntary delisting and involuntary delisting.This paper finds that the corporate governance structure has a significant impact on the delisting of listed companies.Among them,the proportion of independent directors and whether the state-owned holding the impact of the delisting of the role is relatively greater,the higher the proportion of independent directors,the proportion of shares held by the largest shareholder,the second to the top ten shareholders state-controlled enterprises are more likely to delisting.Secondly,the number of the board of directors increased,or keep the director and CEO on the same person,respectively,will reduce the delisting probabilities.However,whether the chairman and general manager of the delimitation does not have a significant impact on the delisting effect.At the same time,the paper also finds out that the market performance of listed companies has effect on the delisting of listed companies,but related to the corporate governance structure,most market performance variables do not significantly affect the delisting of listed companies,such as stock quantity,total assets,.This paper argues that the use of cross-sectional data is difficult to clarify what factors affect the delisting of listed companies.Of all the factors that affect the delisting of listed companies,the characteristics of board of directors and ownership structure are the key factors.To this end,this paper suggests that in order to keep the listed companies in the city,from the perspective of long-term development,we should further perfect the function of board of directors,play a democratic decision-making mechanism,increase the numbers of directors,and control the independent directors.At the same time,it is better to keep the CEO and the director on one person,to further focus on equity,priority to control the top ten shareholders to fully mobilize all the shareholders to participate in the supervision and management of listed companies' enthusiasm.