Publication Type
Journal Article
Version
submittedVersion
Publication Date
11-2009
Abstract
This study investigates a particularly brazen form of corporate abuse, in which controlling shareholders use intercorporate loans to siphon billions of RMB from hundreds of Chinese listed companies during the 1996 to 2006 period. We document the nature and extent of these transactions, evaluate their economic consequences, examine factors that affect their cross-sectional severity, and report on the mitigating roles of auditors, institutional investors, and regulators. Collectively, our findings shed light on the severity of the minority shareholder expropriation problem in China, as well as the relative efficacy of various legal and extra-legal governance mechanisms in that country.
Discipline
Accounting | Asian Studies | Corporate Finance | International Economics
Research Areas
Corporate Reporting and Disclosure
Publication
Journal of Financial Economics
Volume
98
Issue
1
First Page
1
Last Page
20
ISSN
0304-405X
Identifier
10.1016/j.jfineco.2010.05.002
Publisher
Elsevier
Citation
JIANG, Guohua; LEE, Charles M. C.; and YUE, Heng.
Tunneling through intercorporate loans: The China experience. (2009). Journal of Financial Economics. 98, (1), 1-20.
Available at: https://ink.library.smu.edu.sg/soa_research_all/8
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jfineco.2010.05.002
Included in
Accounting Commons, Asian Studies Commons, Corporate Finance Commons, International Economics Commons