Comparative Research On Valuation Of Overseas And Domestic Listed Internet Companies

In recent years,the mature and developed foreign capital markets attracted a lot of Chinese enterprises to list abroad.Many overseas and domestic scholars studied the phenomenon of enterprises listed overseas,including the motivation of overseas listing,comparison of capital raising cost,whether there are premium valuations and improving the long-term performance of the company.More and more Chinese Internet companies have been listed in overseas capital markets,such as the United States and Hong Kong.This phenomenon makes the author begin to focus on overseas listing of Chinese Internet enterprises.The combined experience of undergraduate study major in information technology and internship in a foreign private equity fund made the author hopes to give guidance to domestic Internet companies on listing site selection via comparison on valuation differences of overseas and domestic listed Chinese Internet enterprises.After reading relevant references and understanding the industry background,the author used quantitative analysis method to analyze influence factors of valuations differences of overseas and domestic listed Chinese Internet enterprises.Setting the US,Hong Kong and mainland listed Chinese Internet companies as the sample,this article made the major conclusions via variance analysis and regression analysis as follows:(1)US listed Chinese Internet companies' market valuation is higher than Hong Kong and mainland listed Internet companies.(2)The Price to Sales Ratio of US listed Internet companies are positively related to its growth.The Price to Sales Ratio of domestic listed Internet companies are positively related to net profit margin,negatively related to return on equity and liability.