TY - JOUR
T1 - Governance, monitoring and foreign investment in Chinese companies
AU - Mishra, Anil V.
AU - Ratti, Ronald A.
PY - 2011
Y1 - 2011
N2 - This paper examines corporate governance and foreign equity home bias in Chinese companies. Free float measures are employed to account for bias introduced by insider control. It is found that foreign ownership relative to free float is negatively impacted by legal persons (large domestic cross company) holdings and positively related to large foreign institutional holdings, with the implication that the latter provide a monitoring function that reduces agency problems. Foreign ownership relative to free float is negatively related to firm size, possibly due to quasi government being the primary influence over insider control.
AB - This paper examines corporate governance and foreign equity home bias in Chinese companies. Free float measures are employed to account for bias introduced by insider control. It is found that foreign ownership relative to free float is negatively impacted by legal persons (large domestic cross company) holdings and positively related to large foreign institutional holdings, with the implication that the latter provide a monitoring function that reduces agency problems. Foreign ownership relative to free float is negatively related to firm size, possibly due to quasi government being the primary influence over insider control.
UR - http://handle.uws.edu.au:8081/1959.7/536059
U2 - 10.1016/j.ememar.2011.02.005
DO - 10.1016/j.ememar.2011.02.005
M3 - Article
SN - 1566-0141
VL - 12
SP - 171
EP - 188
JO - Emerging Markets Review
JF - Emerging Markets Review
IS - 2
ER -