Research On The Influence Of A Shares Included In MSCI Index On Corporate Value

On May 31,2018,Morgan Stanley Capital International finally declared that 234 Chinese A-shares would be taken in the MSCI Emerging Market Index,which is a significant event during the opening up of China’s capital market.This paper explores the research method based on empirical analysis of the influence of A-share inclusion in Mingsheng index on enterprise value,and analyzes its influence mechanism.This paper,based on the MSCI emerging markets index A shares,selects the influence on enterprise value as the main research hypothesis and the MSCI emerging market index as policy point,sets the initial target company in the index for the experimental group samples and the rest of the A share target companies as a control group,and uses the differences-in-differences model to explore the changes of the corporate value of the index.In order to ensure the robustness of the empirical results,this paper uses a series of methods:propensity score matching method,replacing the explained variables,excluding QFII samples and placebo test for empirical test.In addition,this paper is based on the nature of the corporates and the proportion of institutional shareholding for further analysis.Through empirical analysis,the final research results of this paper show that compared with the A-share target companies,the corporate value of the included target companies increases significantly,and this impact is mainly through improving the information environment and improving market liquidity.Results of the robustness test again validated this positive effect.The results of further analysis show that the inclusion of MSCI index improves the value of corporates in non-state-owned corporates.In addition,this effect is affected by the shareholding ratio of institutions,and the A-share target companies with a high proportion of institutional shareholding are more significantly affected by the policy.The conclusion of this paper shows that the inclusion of A-shares in the MSCI Index can enhance the corporate value of listed companies,improve the information environment of listed companies,and enhance the liquidity of the A-share market.This paper puts forward targeted rationalization suggestions,and explains the research shortcomings and prospects of this paper respectively.