Overseas listing and performance of private enterprises -Evidence from private enterprises listed in Hong Kong

This study takes Chinese private enterprises listed in Hong Kong as a sample, examines change of Chinese private enterprises´ performance before and after overseas listing. Theoretically, there are two opposite forces imping on the performance of the overseas listing Enterprises: the positive effect of the overseas listing and the negative effect of IPO. The empirical results indicate that private enterprises listed overseas have significant IPO effect, that is private enterprise´s performance rises significantly before overseas listing, but then falls sharply during the listing year. In addition, overseas listing effect is not long-term significant, that is overseas listing can not continue to improve private enterprise performance. Therefore, private enterprises must be prudentially chosen overseas listing.