Topic:How Can Capital Market Liberalization Encourage Corporate Investment: Evidence from the Shanghai-Hong Kong Stock Connect Program

Speaker:NI Xiaoran

Abstract:Employing the launch of the Shanghai-Hong Kong Stock Connect Program as a quasi-exogenous shock, which allows a sub-group of stocks to be investible while others are left non-investible by foreign investors, we find that stock market liberalization encourages capital investment of A-share listed firms. Further analysis indicates that the launch of the program improves investment efficiency, alleviates agency problems, and facilitates equity and debt financing. We fail to observe symmetric effects for H-share listed firms. Overall, our findings indicate that the prospect of increased monitoring associated with capital market liberalization may incentivize firms to seize growth opportunities in order to attract more foreign capital inflows.

Date:Friday, April 12, 2019

Time:12:30-13:30

Location:Room 301, Dingxiang Yuan, Shahe Campus, CUFE