The Impact of Cross-Listing on Internationalization of MNEs in China

Cross-listing refers to the one entreprise lists its shares on two or more stock exchange simultaneously. The researches on cross-listing were originated from the motivations. However, existing researches didn't think it over from strategic motivation, which is another essential motivation. For enterprises, cross-listing is not only a decision of financing but also a decision of strategy, which is closely related with the international strategy of companies to expand overseas markets. This article embarks from the legitimacy acquisition, argues that cross-listing improves the enterprises' legitimacy by involving them into sociopolitical regulation and enhancing the reputation in the international market, thus relieving the liability of foreigners and raising the level of international diversification. In this paper, cross-listed Chinese companies are selected for the sample. We choose location choice to explore the effects of different modes of cross-listing on internationalization.