Related Party Transactions and Institutional Investors in Chinese Listed Companies
Advances in Pacific Basin Business, Economics and Finance
ISBN: 978-1-78756-446-6, eISBN: 978-1-78756-445-9
Publication date: 6 September 2018
Abstract
We study institutional investors’ influence on the use of related party transactions (RPTs) in China. We test the significance of potential factors in the cross-sectional regression analysis of the amount of RPTs reported by Chinese listed companies. We also analyze intraday trading activities and stock prices in days around public announcements of RPTs. Our findings suggest that institutional investors do not have a significant influence on Chinese firms’ usage of RPTs but they react to RPT announcements through buying or selling shares.
Keywords
Acknowledgements
Acknowledgment
We thank Ming-Hua Liu, Yuan Huang, and seminar participants at the University of Macau and the China Accounting and Finance Review (CAFR) Symposium for helpful comments. Shaojun Zhang gratefully acknowledges the financial support of a central research grant from the Hong Kong Polytechnic University (G-SB85).
Citation
Hwang, C.-Y., Zhang, S. and Zhu, Y. (2018), "Related Party Transactions and Institutional Investors in Chinese Listed Companies", Advances in Pacific Basin Business, Economics and Finance (Advances in Pacific Basin Business, Economics and Finance, Vol. 6), Emerald Publishing Limited, Leeds, pp. 1-25. https://doi.org/10.1108/S2514-465020180000006001
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited