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How much concentration is good for minority shareholders? Evidence from Chinese companies

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Listed:
  • Chaoyan Wang

    (University of Nottingham Ningbo China)

  • Yang Tian

    (PricewaterhouseCoopers Zhong Tian LLP)

Abstract

Using moderation and mediation analyses, we examine when and how a concentrated ownership structure might benefit minority shareholders in China’s stock markets. Our findings suggest that a moderate level of ownership concentration in Chinese private companies enhances earnings informativeness, leading not only to increased profitability but also to greater incorporation of information into share prices. However, this relationship weakened after the market crash in 2015.

Suggested Citation

  • Chaoyan Wang & Yang Tian, 2025. "How much concentration is good for minority shareholders? Evidence from Chinese companies," Journal of Asset Management, Palgrave Macmillan, vol. 26(1), pages 71-82, February.
    • Handle: RePEc:pal:assmgt:v:26:y:2025:i:1:d:10.1057_s41260-024-00392-x
    DOI: 10.1057/s41260-024-00392-x
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    More about this item

    Keywords

    Ownership concentration; Earnings informativeness; Moderation and mediation analysis;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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