Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212566 
Authors: 
Year of Publication: 
2005
Series/Report no.: 
BOFIT Discussion Papers No. 14/2005
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
This study investigates the economic consequences of cross-listing on the Chinese stock market.We argue that by adopting a higher disclosure standard through cross- listing firms voluntarily commit themselves to reducing information asymmetry.As a result, cross-listed firms are able to benefit from growth opportunities with less appropriated cash flow and lower cost of capital. The empirical evidence shows that cross-listed firms indeed command higher valuations than their non-cross-listed counterparts, after controlling for certain firm-specific attributes.This lends support to the corporate governance hypothesis of cross-listing on the Chinese stock market.The study also argues that an overall upgrading of accounting standards cannot substitute for the cross-listing mechanism.
Subjects: 
corporate governance
listing
China
Persistent Identifier of the first edition: 
ISBN: 
952-462-794-9
Document Type: 
Working Paper

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