Analysis Of The Reasons And Effect Of Overseas Listing Of Internet Enterprises In China

In the 1970 s and 1980 s,transnational equity financing developed rapidly.In China,many small and medium-sized Internet companies have chosen to list overseas for financing.Starting with the overseas listing of China Networks in 1999,China's Internet enterprises have developed rapidly between 2018.Companies such as Tencent,Netease and Alibaba have grown rapidly,and have also traveled to overseas capital markets.In recent years,the concept of interconnected finance has begun to enter people's lives,and more and more Internet financial platforms have begun to try to enter the capital market.In this paper,we use case analysis method to select Y company listed on the New York Stock Exchange as the case object,through a series of studies on the process of Y company listing overseas,to explore the motivation and effect of its overseas listing,in order to judge the impact of overseas listing financing on the pros and cons of China's Internet companies.This paper mainly studies the motivation of listing and the market effect,financial effect,governance effect and development effect of enterprises before and after listing.The effect analysis mainly combines stock price fluctuation,financial analysis and principal component analysis to analyze the system.Principal Component Analysis(PCA)synthesizes several financial data indicators into several representative principal component indicators,which can more intuitively see whether overseas listing has a positive impact on Y company.Y company is chosen as the research object,mainly because its products and services are in the leading position in the Internet financial industry.Finally,through the exploration,we can see that the overseas listing enlarges the scale of Y company and improves its competitiveness.For other Internet companies to be listed,they should reasonably assess their needs and determine their own business model and profit model according to their own actual situation.Within the scope of risk prevention and control,we should clarify the motivation and target of overseas listing,and put forward corresponding suggestions.It is hoped that some suggestions can be provided for the overseas listing of Internet enterprises.