| Change in ownership structure in a transitional economy |
Received:October 15, 2017 Revised:October 15, 2017 |
Key Words: institution, ownership structure, China |
| Author Name | Affiliation | | xuesong Geng* | Singapore Management University | | Jingyuan Li | Shanghai Jiaotong University | | Daniel Han Ming Chng | China Europe International Business School | | Long Su | China Europe International Business School |
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Abstract: |
| How does ownership structure change as the institutional environment improves in a developing economy like China? In this study, we argue that as the institutional protection of minority shareholders’ interests improved in China, key minority shareholder group will seek to increase their ownership relative to existing controlling shareholder group. We further argue that the need for such changes became less salient in firms that face greater external governance monitoring in terms of higher leverage or more media coverage. However, bank monitoring exert less pressure on state-owned enterprises (SOEs) than media coverage. We test our hypotheses using a panel of Chinese listed firm from 2008 to 2015. This study contributes to the research on the impact of the multi-dimensionality of institutional environment and their interactions on ownership structure in a transitional economy. |
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