Research On The Impact Of AH Cross-listing On The Performance Of Chinese Companies

Cross listing,broadly speaking,refers to the listing of a company's stock in two or more different securities markets.In a narrow sense,a company's stock is listed both in the overseas stock market and in the domestic stock market.The increasingly free flow of international capital has promoted the development of economic integration.The increasingly perfect financial system and the relaxation of financial control in various countries(regions)have prompted more and more companies to cross the market with the international market.In order to obtain more financing ways,enterprises have chosen to be listed in the capital market at home and abroad.Due to the special political and geographical environment and different policies and laws in China,most Chinese companies choose their cross listing in the mainland and Hong Kong.Large enterprises in the mainland are keen on overseas listing.In addition,in recent years,the CSRC has said that it will expand the access standard for small and medium-sized enterprises to go public in Hong Kong,and the rise of Hong Kong and Hong Kong.The Chinese government put forward the establishment and improvement of registration system in 2015.It will promote more companies to go into the IPO market,even the mainland A-shares and Hong Kong H-shares cross-listing.Cross listing has opened up two capital markets both inside and outside China,promoting the integration of global capital market and making stock an important part of transnational capital flows.Although the dual listing of more and more enterprises choose,but empirical research did not show signs of cross listed companies operating performance improved,on the contrary from the foreign research conclusion,cross listed companies operating performance after it declined to explain how the cross on the city after the corporate performance decline this phenomenon,and then seek a solution to the decline in the performance of the cross after the listing,the academia and the industry focus on.Based on the perspective of capital cost,investment income,and corporate governance,this paper combines the background of the overseas listed companies' return to the A-share market boom.Firstly,the background and significance of the topic are introduced,relevant theories of cross-listing are elaborated,and cross-listings at home and abroad are discussed.The related literature is reviewed.After that,it introduced the overview of AH Cross-listing in China and the problems existing in cross-listing,and elaborated the mechanism of cross-listing on the company's operating performance.In the empirical part,the paper adopts PSM to pair the sample data,and explores the influence of the AH cross-listing on the company's operating performance based on the average processing effect(ATT)and T-test value of the AH cross-listed company sample result variables.Its influence mechanism.Compared with the traditional OLS regression analysis,the propensity score matching method(PSM)can effectively solve the problem of selective bias in the research.At the same time,this paper also discusses the classification of AH cross-listed companies from the perspectives of the nature of the company's equity and the company's AH cross-listing model,in order to explore the impact of AH cross-listing on the operating performance of different types of companies.Finally,we use the kernel matching method to test the robustness of the nearest neighbor matching method.After the study,it was found that:(1)Compared with pure A-share listed companies,after the implementation of AH cross-listing,the company's operating performance fell instead,the concentration of equity was significantly strengthened,the agency cost was not significantly affected,the cost of equity financing was significantly reduced,and investment expenditure was significantly reduced.With the increase,the profitability of investment has decreased significantly,and the level of holdings of current assets has dropped significantly.The cross-listed capital cost mechanism and corporate governance mechanism affecting the company's operating performance all showed adverse effects after the company's AH cross-listing,making the company's operating performance not rise after the cross-listing;(2)After the AH cross-listing,the state-owned enterprises operated The performance has not been significantly affected,and the non-state-owned company's operating performance has dropped significantly.The state-owned equity has inhibited the decline of the company's operating performance after the AH cross-listing;(3)The cross-listed company's operating performance of the A+H model has not been affected by the cross-listing.Significant influence,while H + A model and A × H model cross-listed companies after the cross-listing company's operating performance significantly decreased,A + H mode AH cross-listing after the company's operating performance has reduced inhibition.