Cross-Listing and Bonding Premium: Evidence from
Chinese Listed Companies
Hongbo Shen 1, Li Liao2, Guanmin Liao 3,
Author information+
1.Institute of Financial
Studies, Fudan University, Shanghai 200433, China; 2.School of Economics
and Management, Tsinghua University, Beijing 100084, China; 3.School of Accounting,
Central University of Finance and Economics, Beijing 100081, China;
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History+
Published
05 Jun 2010
Issue Date
05 Jun 2010
Abstract
This paper examines whether cross-listing enables firms to earn a higher valuation. We contrast a sample of 580 Chinese firms cross-listed on the B-share market of China and 159 Chinese firms cross-listed on the Hong Kong H-share market against a control sample of domestic firms listed only on the A-share market of China. It is found that firms cross-listed on B-share and H-share markets both enjoy bonding premiums. Moreover, the bonding premium is larger for H-share firms than for B-share firms. Results show that the amount of bonding premium is positively related to the level of investor protection, which provides supporting evidence to the bonding theory.
Hongbo Shen , Li Liao, Guanmin Liao ,.
Cross-Listing and Bonding Premium: Evidence from
Chinese Listed Companies. Front. Bus. Res. China, 2010, 4(2): 171‒184 https://doi.org/10.1007/s11782-010-0008-0
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