Cross-Listing and Bonding Premium: Evidence from Chinese Listed Companies

Hongbo Shen 1, Li Liao2, Guanmin Liao 3,

PDF(435 KB)
PDF(435 KB)
Front. Bus. Res. China ›› 2010, Vol. 4 ›› Issue (2) : 171-184. DOI: 10.1007/s11782-010-0008-0
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Cross-Listing and Bonding Premium: Evidence from Chinese Listed Companies

  • Hongbo Shen 1, Li Liao2, Guanmin Liao 3,
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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.

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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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