The Impact Of Inclusion Of A-shares In The MSCI Emerging Markets Index On Company Value

In the early morning of June 21,2017,MSCI(Mingsheng Company)officially announced that since June 2018,China's A shares will be formally included in the MSCI Emerging Markets Index.Meanwhile,MSCI also announced 222 A shares to be covered by the Emerging Markets Index in the future,accounting for about 0.73% of the weight of the index.It is reported that MSCI started the consideration of A shares into the emerging market index on June 12,2013.After four years and three discounts,A shares finally succeeded in breaking through the barrier.After reading a lot of literature research,this paper chooses the hypothesis of the impact of A-share "entering into the MSCI" on the company's value as the research hypothesis,draws lessons from the existing reliable model-Difference in difference model,and takes the listed companies included in the MSCI emerging market index as the experimental group.The other companies are used as the control group to estimate the double difference.The final results show that the listed companies included in the MSCI emerging market index are public.Comparing with the companies not included,the company's value has increased significantly.At the same time,the results of robustness test such as propensity score matching method and matching according to certain stock selection criteria are still significant.It proves that the incorporation of A shares into MSCI Emerging Market Index can promote the company's value.At the same time,this paper further analyses the influence path of incorporating MSCI Emerging Market Index on the company's value.The results show that the incorporation of A shares into MSCI Emerging Markets Index improves the liquidity of the company's stock,and the proportion of land-port shares has increased.This shows that the proportion of foreign investors through land-port shares has increased and the liquidity of the stock has increased,thus affecting the company's value.Finally,this paper puts forward some reasonable suggestions,and explains the limitations and future prospects of this paper.