The choice of foreign primary listing: China’s share-issue privatization experience
Governments can choose to share-issue privatize their state-owned enterprises (SOEs) domestically or abroad. Domestic share issue privatization (SIP) has the benefits of facilitating domestic market development (Subrahmanyam and Titman, 1999) and avoiding possible higher costs of foreign listing. However, we argue that if the domestic market is not well developed and cannot absorb rapid and large-scale SIP activities, SIP abroad to upkeep the domestic market order may be optimal. Furthermore, listing shares in more developed overseas markets enables domestic SOEs to bond to better accounting, governance, and legal standards. Using 53 Chinese firms listed in Hong Kong and 663 purely domestically-listed Chinese firms during the period 1993-2002, we find evidences for both arguments.
Privatization foreign listing bonding hypothesis corporate governance China SOE
Qian Sun Wilson H.S. Tong Yujun Wu
Institute for Financial and Accounting Studies Xiamen University Xiamen 361005, China School of Accounting and Finance Faculty of Business Hong Kong Polytechnic University Hung Hom, Kowl
国际会议
成都
英文
1-38
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）