Non-controlling Large Shareholders and Firm Performance in China

作者：Yan, Caiyu^*; He, Hongqu

来源：Asia-Pacific Journal of Financial Studies, 2018, 47(3): 401-425.

DOI：10.1111/ajfs.12216

• China
• Firm performance
• Investment efficiency
• Non-controlling large shareholders
• Tunneling

This paper examines the determination of non-controlling large shareholders (NCLSs) on firm performance and investigates the impacts of NCLSs on tunneling and investment efficiency. We use three attributes of NCLSs (ownership, identity, and relational board/management representation) to fully capture the governance effects of NCLSs. We find robust evidence that NCLSs are associated with higher firm performance. Furthermore, we also document that NCLSs promote investment efficiency. However, except for individual investors, the other items in NCLSs deteriorate tunneling. Additionally, except for mutual funds, we find that the other governance effects of NCLSs are stable under different circumstances.

• 出版日期2018-6
• 单位中南大学