An Empirical Study on Cross-Border Related Party Transactions of China's Listed Companies

This study focuses the empirical examination on the relationship between internal governance factors and cross-border related party (CBRP) transactions of Chinese firms. Using the data of the listed companies in China's Stock Exchanges during 2003-2007, we find that the size of CBRP transaction...

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Bibliographic Details
Main Authors: Songhua Hu, Guang Li
Format: Conference Proceeding
Language:English
Subjects:
Companies
Gold
Indexes
Stock markets
Tunneling
Online Access:Request full text
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Summary:This study focuses the empirical examination on the relationship between internal governance factors and cross-border related party (CBRP) transactions of Chinese firms. Using the data of the listed companies in China's Stock Exchanges during 2003-2007, we find that the size of CBRP transactions is positively associated with concentrated ownership, imbalance of power among large shareholders, CEO duality and outside directors' compensations. Our results also reveal that the size of CBRP transactions is negatively related to the proportion of outside directors, but not significantly correlated with equity incentive for executives. There is also evidence that state-owned companies make more CBRP transactions than non-state-owned companies. These findings have important implications for improvements in corporate governance and investor protection.
DOI:10.1109/ICEEE.2010.5660805