Cross listing, corporate governance and corporate performance

PurposeThe purpose of this paper is to explore whether corporate governance is the intermediary between the cross listing strategy and corporate performance.Design/methodology/approachThe paper first reviews the studies on cross listing and corporate governance, and then constructs the theoretical model to express the relationship between cross listing, corporate governance, and corporate performance. Then, the paper takes the regression test and mediating effects test with the companies listed in Hong Kong as the sample.FindingsEmpirical studies found that corporate governance is the intermediary between the cross listing strategy and corporate performance. Meanwhile, the study verified that cross listing strategy does enhance corporate performance.Originality/valueThe finding will help Chinese corporations choose another way to be international and practise the strategy of cross listing.