International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-level Evidence from China

Abstract

for their assistance with various aspects of the research fieldwork. We are especially grateful to the Guest Editors (Linda Yueh and Yang Yao) and two anonymous referees of this special issue for detailed and very constructive comments and suggestions. This paper proposes a micro-level framework to account for how firms in developing economies overcome domestic institutional constraints. It illustrates that the mechanisms enabling those firms to benefit from financial globalization are more complex than the "direct" financial channels outlined in the neo-classical approach. China provides an important example in this context, as its capital market liberalization has been limited and neither the legal nor financial system is well developed. Yet microlevel evidence from China's internationally listed enterprises indicates that innovative firms can overcome institutional thresholds, secure access to international capital, and benefit and learn from international capital markets. This can in turn induce market-level improvements through regulatory competition and demands for a more standardized system of economic regulation.

Does Governance Cause Growth? Evidence from China

“…Reflecting the uncertainty surrounding many aspects of China's political and economic development, previous studies have posited a number of different, often contradictory, explanations: informal versus formal governance mechanisms (Allen, Qian, & Qian, 2005;Y. Peng, 2004), provincial versus central government (Lin & Liu, 2000;Xu, 2011), or governance as an independent factor versus feedback effects from economic changes (Chen, 2003;Tobin & Sun, 2009;Yao & Yueh, 2009). The findings in this paper emphasize the importance of feedback effects from economic growth to quality of governance at the provincial level.…”

A variety of capitalism … with Chinese characteristics?

“…It has been observed that China's financial markets have not been effective in supplying investment capital, improving performance or signaling information (Shirai, 2004). However, with the soaring number of overseas initial public offerings, foreign financial markets have been increasingly used to 'govern' China's domestic firms, private and public alike (Tobin and Sun, 2009). Ironically, 'managers of Chinese pillar industry state-owned firms [may be] more accountable to the U.S. Securities and Exchange Commission than to the Chinese central government' (Steinfeld, 2010, 35).…”

Globalization and decarbonization: Changing strategies of global oil and gas companies

“…With the help of hedging and risk aversion functions in the financial market, O&G companies can manage risks and ensure their stable development (Jin & Jorion, 2006; Mnasri et al, 2017; Xue et al, 2022). Some NOCs also raise funds through listing on stock exchanges, with some companies even internationally cross‐listing in their effort to access the most developed stock markets (Tobin & Sun, 2009; Wójcik & Burger, 2010). The IOCs’ generosity in practices of share buy‐backs and dividend policies is one of the main reasons why IOCs are still so popular among investors and there is no doubt the current high prices and profitability are resulting in a change in investor sentiment, in the short‐term at least (Simonetti, 2022).…”