Asian Business & Management

, Volume 11, Issue 5, pp 591–613

The determinants of overseas listing decisions: Evidence from Chinese H-share companies

  • Fan-Hua Kung
  • Chia-Ling Cheng
Original Article

DOI: 10.1057/abm.2012.24

Cite this article as:
Kung, FH. & Cheng, CL. Asian Bus Manage (2012) 11: 591. doi:10.1057/abm.2012.24
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Abstract

This article examines determinants in the decision of Chinese companies to seek overseas listings. Because most H-share companies listed in Hong Kong are state-owned, factors related to both politics and corporate governance have a profound influence on the decision to list overseas. The sample in this study comprised all listed Chinese companies that issued A-shares and mainboard-listed H-shares between 2003 and 2008. We hypothesize that companies are motivated to list overseas in accordance with political and corporate governance arguments. Our results support this assertion. Companies with strong political ties (generally large-scale ventures, managed by politically connected CEOs, and considered to be in strategic industries) demonstrate a pronounced inclination to list overseas. We also found that in H-share companies listed in Hong Kong, ownership tends to be more balanced, with a larger number of independent directors, and few instances of controlling shareholders or CEO duality, compared with the situation in pure A-share companies.

Keywords

overseas listingChinese H-sharescorporate governancepolitical relations

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2012

Authors and Affiliations

  • Fan-Hua Kung
    • 1
  • Chia-Ling Cheng
    • 2
  1. 1.Department of AccountingTamkang UniversityNew Taipei CityTaiwan
  2. 2.Department of AccountingFu-Jen Catholic UniversityNew Taipei CityTaiwan