The pervasiveness and severity of tunneling by controlling shareholders in China
AbstractThis article investigates tunneling by controlling shareholders in China's public companies, and finds that, first, tunneling is pervasive and severe; and, second, private controlling ownership significantly increases the severity of tunneling. This article argues that in China, where there is not sufficient and effective legal protection for investors, controlling shareholders, especially shareholders of privately controlled public companies, are able to conduct tunneling at minimal costs. Further, corporate governance mechanisms alone are not sufficient to protect minority shareholders.
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Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 21 (2010)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/chieco
Privatization Tunneling Corporate governance Private controlling ownership State-owned enterprise reform;
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