Why Chinese Firms Listed Abroad: Financing or Strategic Layout?

By comparing the performance of domestic and overseas listed companies in the capital market, this paper shows that overseas listed companies do not have a better performance than their domestic counterparts, rejecting the hypothesis of financing motivation of overseas listings. Further research shows that overseas listed companies are significantly better than domestic listed companies in terms of innovation investment and attracting overseas high-end talents. In addition, overseas listed companies have an advantage in the expansion of international market over domestic listed companies. These findings suggest that there are strategic motives for overseas listed Chinese companies.