Accounting Information Value Relevance of Dual-listing Company

We study the value relevance of accounting earning information of dual-listing companies. We find that the accounting earning information according to HK-GAAP (or IASs) is useful for H share, the investors in A share markets prefer unexpected EPS to EPS, the financial statements based on HK-GAAP(or IASs) also provides useful information to the investors in A share markets, the investors in H share markets make their decisions mainly depending on HK-GAAP (or IASs)'s information. Therefore, dual-listing companies should provide accounting information based on HK-GAAP (or IASs) to overseas' investors. From the view of the information transmission, the segmentation between mainland and Hong Kong capital markets is distinct.