Firm Cross-border Listings, Strategic Risk Governance and Competitive Advantages

Abstract

Abstract:

Given the relatively underdeveloped capital market and financing difficulties in China, more and more Chinese enterprises choose to list in U.S. market. By constructing a quantitative index that can more effectively evaluate strategic risk governance, and by using a more strict sample matching approach to get 1640 observations of matched sample and Chinese companies listed in the U.S. between 2007 and 2014, and using Heckman two-step method and system GMM method to control potential endogenous problems, this paper constructs some non-balanced panel data models to test the mechanism from cross-border listing to competitive advantages. The results show that, as one of the core components of corporate governance and strategic management, strategic risk governance is influenced by cross-border listings, but on the other hand, it is also an important source of enterprise competitive advantages. Actually strategic risk governance has become a road or transmission mechanism from cross-border listing to competitive advantages. On this basis, some corresponding policy recommendations are put forward.

Key words: cross-border listing, competitive advantage, IPO effect, matched sample

Yuan Deli, Chen Xiaolin. Firm Cross-border Listings, Strategic Risk Governance and Competitive Advantages[J]. , 2018, 30(6): 184-195.

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