Are the Taiwanese Firms Listed on the Hong Kong Stock Exchange Undervalued?

在香港上市臺商之公司評價是否受到低估？

10.6545/JFS.2015.23(2).3

沈中華(Chung-Hua Shen)；王健安(Chien-An Wang)；連兆龍(Chao-Lung Lien)

臺商 ； 香港上市 ； 價值低估 ； 傾向分數配對法 ； Taiwanese enterprises ； cross listing in Hong Kong ； undervaluation ； propensity score methods

財務金融學刊

23卷2期（2015 / 06 / 30）

55 - 103

英文

以赴香港上市之臺商公司為樣本，本研究檢驗其是否因當地投資者偏好特定產業或因資訊不對稱等，而無法得到公平評價。為避免樣本選擇性偏誤，本文運用傾向分數配對法，找出與臺商類似財務特質之香港當地上市公司，供後續比較。研究結果發現，從市值面值比、本益比來看，赴港上市臺商公司之評價，並未受到低估。

Using the sample of the Taiwanese firms listed on the Hong Kong Stock Exchange, we test whether the valuation of the listed Taiwanese firms is influenced by Hong Kong local investor preferences for specific industries or information asymmetry. To avoid sample selection bias, the propensity score methods are applied to obtain local counterparts in Hong Kong for comparison. The results show that the Taiwanese firms listed on the Hong Kong Stock Exchange are not significantly undervalued.

1. Liberty Times, 2007, Listing in Taiwan was not worse than that in Hong Kong, October 15 (in Mandarin)
2. Ayyagari, Meghana, 2004, Does cross-listing lead to functional convergence? Empirical evidence, Working paper
3. Economic Daily News, 2007, Taiwanese enterprises have been undervalued on the HKE, December 2 (in Mandarin).
4. King, Michael R., and Dan Segal, 2003, Valuation of Canadian- vs. U.S.-listed equity: Is there a discount? Working paper
5. Pinegar, Michael, and Ravi Ravichandran, 2004, When does bonding bond? The case of ADRs and GDRs, Working paper
6. Beltratti, Andrea, and Bernardo Bortolotti, 2007, The non-tradable share reform in the Chinese stock market: The role of fundamentals, Working paper
7. (2007)。Taiwanese enterprises listing in Hong Kong generally underperformed。Taiwan News Weekly Finance/Culture，311
8. Burns, Natasha, 2004, The role of cross-listed stock as an acquisition currency: Evidence from takeovers of U.S. firms, Working paper
9. Alexander, Gordon J.,Eun, Cheol S.,Janakiramanan, Sundaram(1988).International listings and stock returns: Some empirical evidence.Journal of Financial and Quantitative Analysis,23,135-151.
10. Bekaert, Geert,Harvey, Campbell R.(2000).Foreign speculators and emerging equity markets.Journal of Finance,55,565-613.
11. Biddle, Gary C.,Saudagaran, Shahrokh M.(1991).Foreign stock listings: Benefits, costs, and the accounting policy dilemma.Accounting Horizons,5,69-80.
12. Caliendo, Malendo,Hujer, Reinhard(2006).The microeconometric estimation of treatment effects - An overview.Allgemeines Statistisches Archiv,90,199-215.
13. Cheung, Sherman,Lee, Jason(1995).Disclosure environment and listing on foreign stock exchanges.Journal of Banking and Finance,19,347-362.
14. Coffee, John C.(1999).The future as history: The prospects for global convergence in corporate governance and its implications.Northwestern University Law Review,93,641-707.
15. Coffee, John C.(2002).Racing towards the top? The impact of cross-listings and stock market competition on international corporate governance.Columbia Law Review,102,1757-1831.
16. Doidge, Craig,Karolyi, George A.,Stulz, René M.(2004).Why are foreign firms listed in the U.S. worth more?.Journal of Financial Economics,71,205-238.
17. Ejara, Demissew,Ghosh, Chinomy(2004).Underpricing and aftermarket performance of American depositary receipts (ADR) IPOs.Journal of Banking and Finance,28,3151-3186.
18. Errunza, Vihang R.,Miller, Darius P.(2000).Market segmentation and the cost of capital in international equity markets.Journal of Financial and Quantitative Analysis,35,577-600.
19. Fanto, James A.,Karmel, Roberta S.(1997).A report on the attitudes of foreign companies regarding a U.S. listing.Stanford Journal of Law, Business and Finance,3,51-83.
20. Foerster, Stephen. R.,Karolyi, George A.(2000).The effects of market segmentation and investor recognition on asset prices: Evidence from foreign stocks listing in the United States.Journal of Finance,54,981-1013.
21. Francis, Bill,Hasan, Iftekhar,Li, Feng(2001).Underpricing of foreign and domestic IPOs in the U.S. market: Empirical evidence.Financial Markets, Institutions, and Instruments,10,1-18.
22. Greene, William H.(2011).Econometric Analysis.Upper Saddle River, NJ:Prentice Hall.
23. Heckman, James,Ichimura, Hidehiko,Smith, Jeffrey,Todd, Petra(1998).Characterizing selection bias using experimental data.Econometrica,66,1017-1098.
24. Karolyi, George A.(2006).The world of cross-listings and cross-listings of the world: Challenging conventional wisdom.Review of Finance,10,99-152.
25. Leuz, Christian(2006).Cross listing, bonding and firms' reporting incentives: A discussion of Lang, Raedy, and Wilson (2006).Journal of Accounting and Economics,42,285-299.
26. Licht, Amir N.(2003).Cross-Listing and corporate governance: Bonding or avoiding?.Chicago Journal of International Law,4,141-163.
27. Licht, Amir N.(2001).Managerial opportunism and foreign listing: Some direct evidence.University of Pennsylvania Journal of Economic Law,22,325-347.
28. Lien, Chao-Lung,Wang, Chien-An(2012).The bonding hypothesis in poor governance environments: Empirical data from an international firm level data.Emerging Market Financial and Trade,48,45-67.
29. Lins, Karl V.,Strickland, Deon,Zenner, Marc(2005).Do non-U.S. firms issue equity on U.S. stock exchanges to relax capital constraints.Journal of Financial and Quantitative Analysis,40,109-133.
30. Merton, Robert. C.(1987).A simple model of capital market equilibrium with incomplete information.Journal of Finance,42,483-510.
31. Miller, Darius P.(1999).The market reaction to international cross-listings: Evidence from depository receipts.Journal of Financial Economics,51,103-123.
32. Pagano, Marco,Röell, Ailsa A.,Zechner, Josef(2002).The geography of equity listing: Why do companies list abroad?.Journal of Finance,57,2651-2694.
33. Rosenbaum, Paul R.,Rubin, Donald B.(1983).The central role of the propensity score in observational studies for causal effects.Biometrika,70,41-55.
34. Rubin, Donald B.(1977).Assignment to a treatment group on the basis of a covariate.Journal of Educational Statistics,2,1-26.
35. Sarkissian, Sergei,Schill, Michael J.(2009).Are there permanent valuation gains to overseas listing?.Review of Financial Studies,22,371-412.
36. Saudagaran, Shahrokh M.(1988).An empirical study of selected factors influencing the decision to list on foreign stock exchanges.Journal of International Business Studies,19,101-127.
37. Saudagaran, Shahrokh M.,Biddle, Gary C.(1992).Financial disclosure levels and foreign stock exchange listing decisions.Journal of International Financial Management and Accounting,4,106-148.
38. Serra, Ana P.(1999).Dual-Listings on international exchanges: The case of emerging markets' stocks.European Financial Management,5,165-202.
39. Siegel, Jordan I.(2005).Can foreign firms bond themselves effectively by renting U.S. securities laws?.Journal of Financial Economics,75,319-359.
40. Stulz, René M.(1999).Globalization, corporate finance, and the cost of capital.Journal of Applied Corporate Finance,12,8-25.
41. Subrahmanyam, Marti G.(1975).On the optimality of international capital market integration.Journal of Financial Economics,2,3-28.
42. Wang, Chien-An(2012)。Salmon return: The policy implication that the Taiwanese firms decide where to be listed overseas。Taiwan Economic Journal: Money Watching and Credit Rating，93，39-56。
43. Wang, Steven S.,Jiang, Li(2004).Location of trade, ownership restrictions, and market illiquidity: Examining Chinese A- and H-shares.Journal of Banking and Finance,28,1273-1297.