Does Control Shareholders Obtain Their Control Right Private Benefits in Reducing Shares?
Read
DownLoad |
| Title | Does Control Shareholders Obtain Their Control Right Private Benefits in Reducing Shares?
|
| Author | Huang Zhizhong |
| Organization | Research Institute of Accounting and Finance, Nanjing University |
| Email | acchuang@163.com |
| Key Words | Share Reduction; Information; Control Right Private Benefits; Fund Behavior |
| Abstract | This paper investigated whether the company's largest shareholders could obtain control right private benefits in their reducing shares in stock market resorting to any sorts of tricks. The results showed that the largest shareholder did get the control right private benefits in their reducing shares. Control shareholders realized their control right benefits in two ways: First, releasing good news by firms controlled by them before reduction. Secondly, resorting to helps by funds. We also found that non-largest shareholder could also obtained abnormal reducing returns by the same ways. This study revealed a new way the largest shareholders conducted to expropriate wealth from minority shareholders post equity division reformation, enriched the tunneling theory, and offered a new perspective for tunneling behavior studies. |
| Serial Number | WP346 |
| Time | 2012-08-29 |
|