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Institutional ownership and corporate transparency in China

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  • Liu, Ningyue
  • Laing, Elaine
  • Cao, Yue
  • Zhang, Xiaofei

Abstract

This letter examines the effect of institutional ownership on corporate information transparency in Chinese listed firms. We find strong evidence that mutual fund and qualified foreign institutional investors significantly improve corporate transparency. Our results suggest that institutional shareholders play an important role in improving both corporate governance and accounting transparency and are consistent with the view that institutional investors monitor and protect the interests of minority shareholders.

Suggested Citation

  • Liu, Ningyue & Laing, Elaine & Cao, Yue & Zhang, Xiaofei, 2018. "Institutional ownership and corporate transparency in China," Finance Research Letters, Elsevier, vol. 24(C), pages 328-336.
    • Handle: RePEc:eee:finlet:v:24:y:2018:i:c:p:328-336
    DOI: 10.1016/j.frl.2017.12.001
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    More about this item

    Keywords

    Accounting information transparency; China; Corporate governance transparency; Institutional ownership; Mutual funds;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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