Study on the capital operating performance and efficiency of Chinese cross-listed firms

Abstract

We study the capital operating performance and efficiency of Chinese firms after cross-listed. We find that the advantages of market environments and institutions will improve the capital operating performance and efficiency of Chinese cross-listed firms, therefore protect the investor's interests and improve the corporate governance of cross-listed firms. We also find that: for those Chinese cross-listed firms which need not comply with overseas related laws, regulations, institutions and listing guidelines, not only their capital operating performance and efficiency are lower than those of Chinese cross-listed firms which comply but also their capital operating efficiency is lower than that of Chinese non-cross-listed counterparts. Also, their capital operating performance isn't higher than that of Chinese non-cross-listed counterparts. Therefore, if Chinese firms are preparing for an overseas cross-listed, they should cross-list in those overseas securities markets with more market environment and institution advantage, complying with the laws, regulations, institutions and guidelines in overseas markets. Only in this way it would be helpful to improve the capital operating performance and efficiency and the corporate governance.