Study On Shanghai-Hong Kong Stock Connect Program And Quality Of Accounting Information

The Shanghai-Hong Kong stock connect program is an interconnection mechanism between the SSE and HKEX,which allows investors in both places to buy and sell the underlying stocks on the other exchange through local securities companies and brokers.The program was launched on November 17,2014.The implementation of the program is actually to promote the opening and reform of the mainland capital market through external forces.Expanding investment channels for investors in Shanghai and Hong Kong and introducing foreign investors can help deepen the reform of China's capital market and improve the market mechanism,thus exert influence on the corporate governance.Based on the literature research,theoretical research and empirical analysis method.The PSM-DID is chosen as the method of empirical analysis.Samples in Shanghai A-share list are all selected among year 2008-2017,in addition to the financial industry,the number of company less than 10's industries,the target companies which changed their program qualification during the period.The study mainly explores the program's impact on the quality of accounting information,adding further analysis on the different impact between different enterprise property,different degree of two rights separation and different degree of stock equity balance.Regression results show that the implementation of the program improves the quality of accounting information of target companies.Such impact is more obvious in enterprises of non-state,higher two rights separation degree and lower equity balance degree.It proves that to a certain extent,such impact can ease the principal-agent problems.Also somehow such impact can make up the defect triggered by ownership structure in corporate governance aspect.This study provides a scientific basis for the effect of corporate governance brought by the implementation of Shanghai-Hong Kong stock connect program,and also provides reference and inspiration for the deepening reform of China's stock market and other capital market opening policies.