【正文】 ablishing an ADR program. The result shows that the firms who list in . through ADR issuance eventually experience an unexpected increase in their stock prices, of about 10% in the year before the listing. However, this unexpected increase is followed by a decrease of 9% in the year after listing. Miller (1999) finds that the corporations from the emerging markets with the relatively higher degree of market segmentation earn the higher positive average abnormal returns than the corporations from developed markets with relatively lower degree of market segmentation do. These findings support the Market Segmentation Hypothesis, confirming that overseaslistings can lower the costs of capital for corporations. Overseaslisting can also be explained by a liquidity argument. Amihud and Mendelson (1986) claim that overseaslistings can enhance the stock’s liquidity so as to decrease the capital costs, because overlistings would help panies to get access to more investors, leading to a higher volume. Following that, Foerster and Karolyi (1998), Domowitz, Glen and Madhavan (2004) study the impact of foreign firms’ listing on . exchanges on the costs of security transactions, and generally find that spreads decrease and trading volume increases following the listing, both of which reflect an increase in liquidity. Bonding Hypothesis can be dated back to the introduction of Law and Finance Theory. Coffee (1999,2002) was the first one to point out that corporate governance matters for overseaslisting firms, the socalled “bonding” hypothesis. He argues that firms with poor corporate governance in their home countries or regions tend to list their securities on the stock markets located in countries or regions with more rigorous governance standards. “Bonding” to more rigorous governance standards boosts investors’ confidence as well as improves the access to capital, which, in turn, lowers the cost of capital and increases the value of the firm. In terms of the information asymmetry and agency costs, Stulz (1999) points out the significant impacts of corporate governance on the capital cost, that is, overseaslistings can decrease the equity costs through improving some forms of corporate governance mechanism such as improving legal systems, regulating the information disclosures and so on. Reese and Weibach (2002) study the sequel financing following the firm’s overseaslisting, and find that the foreign firms increase equity financing after their listing on . capital market, especially for those firms from countries or regions with poorer investor protection. Their findings support Coffee’s Bonding Hypothesis from another standpoint. To sum up, the limits of current literatures are to merely explain the firms’ listing overseas as a type of financing activities, rather than to deeply explore the relationships between the firm’s overseaslisting and its other basic economic activities. Accordingly, there lack the literatures on the motives of overseaslistings in terms of corporate strategy. In fact, the firm’s overseaslisting not only does with its financing activities, but also closely relates with its strategy of overseas expansion. For those firms who are planning to tap into overseas markets, listing overseas undertakes part of responsibilities for the firm’s strategic development. Considering that, this paper’s discussion over the link between the firm’s overseaslisting and its internationalization strategy can further enrich the current theories on the overseaslisting’s motives, being theoretically significant. At the same time, due to the Government’s deregulation efforts, Chinese firms are expanding overseas more and more quickly. Under such a practical background, whether the firm’s overseaslisting and its overseas expansion can plement each other is a practical issue, which deserves analyzing. 2 The OverseasListing and the Internationalization Strategy: A Theoretical Analysis The firm’s internationalization strategy is a set of development plans during the firm’s international operation, targeting to enhance the firm’s petitiveness and its adaptive capacity to the environment. The firm’s internationalization strategy will affect its internationalization progress greatly, and eventually determine its future development. The internationalization strategy takes the forms of exports, foreign direct investments (FDI), crossborder mergers and acquisitions (Mamp。A). By its very nature, export is the result of the firm’s operating activities, while FDI and crossborder Mamp。A fall in the firm’s investing activities. Then, how about the overseaslisting? In nature, it is a type of financing activities. According to the financial management principles, the scale and efficiency of the firm’s financing activities determine the scale and efficiency of its investing activities, and all kinds of assets formed through investing activities provide the foundation for the firm’s operation. 272 H. Xu Thereby, the scale and efficiency of the firm’s financing activities determine its operating activities ultimately. Based on that, this paper believes that the firm’s listing overseas will affect the internationalization strategy’s implementation through the two approaches as below. Firstly, the overseaslisting can decrease the capital cost according to the financial motives theory of overseaslisting, which will bring more investment projects with positive net present value for the firm, and eventually expand its investment scale with a better investment return, especially benefiting its FDI and crossborder Mamp。A. Secondly, once the firm lists its shares on foreign markets, the consumer recognition for the firm’s products and services will be reinforced, which enlarges the customer segments in foreign markets with a great increase in the firm’s export to this country or region, and improves the firm’s operation eventually. Thus it can be seen that overseaslisting performs a significant role in