Using moderation and mediation analyses, we examine when and how a concentrated ownership structure might be beneficial for minority shareholders in China's stock markets. Our findings suggest that a median level of ownership concentration in Chinese private companies enhances earnings...

An efficient corporate governance system ensures that an organization runs smoothly, protects shareholders, and ensures that directors conduct their duties in the best interests of the company. Because of their dominant position and voting power, majority shareholders can abuse their power by...

Using hand-collected data from China’s split share structure reform (SSSR) programme, we theorise and show that the certification of foreign institutional investors mitigates domestic minority shareholders’ mistrust of controlling shareholders’ reform plans and facilitates the SSSR....

The fine balance between prevention of minority shareholder rights and the independent will of the majority shareholders to run the company they majorly hold is largely dependent on the securities enforcement agencies of the country. In India, The SEBI has engaged in minority protections at the...

We investigate a 2012 pay-or-explain regulation implemented by China's Shanghai Stock Exchange. The regulation mandates that eligible firms must either pay 30% of their current-year profits as cash dividends or explain the reasons for their nonpayment through a public conference call. Using...

This study investigates whether and how minority shareholders activism (MSA) affects executives’ pay–performance sensitivity (PPS). Based on annual data of listed companies on SSE and SZSE from 2010 to 2021, we find that MSA significantly promotes executives’ pay-performance sensitivity,...

Minority shareholders are put in a precarious position in Pakistan's predominantly family-owned/private sector companies. Controlling shareholders abuse their power and make self-serving decisions that harm the rights of both the company and minority shareholders. To that end, it is suggested...

Legal records indicate that conflicts of interest -- that is, situations in which officers and directors were in a position to benefit themselves at the expense of minority shareholders -- were endemic to corporations in the late-nineteenth and early-twentieth century U.S. Yet investors...

We study the monitoring behavior of minority shareholders in private companies. We draw on a landmark judgment by Texas Supreme Court in June 2014 that significantly curtailed minority shareholders’ monitoring ability in private firms. The judgment provides a natural experiment to examine how...

The purpose of this study is to examine the moderating effect of foreign institutional investors on the relationship between political connection and tunneling. To achieve this goal, our study has examined all companies listed on the Indonesia Stock Exchange between 2015 and 2019, and obtained...

We find that minority shareholders’ voting opposition to dividend proposals is associated with significantly higher cash dividend payout in the following year for stocks listed in Shanghai Stock Exchange. When minority shareholders’ voting opposition increases, the likelihood and frequency...

Companies are considered to be microcosms of the countries and the society in which they operate. They are the collective institution of people having diverse interests but pursuing a common objective of growth and development of every individual involved. The rules dealing with corporate...

Minority shareholdings have been on the regulatory agenda of competition authorities for some time. Recent empirical studies, however, draw attention to a new, thought provoking theory of harm: common ownership by institutional investors holding small, parallel equity positions in several...

The protection of minority shareholders in Cameroon is an ancient weakness recognized of plaguing the Cameroon commercial scene from the existence of the concept itself. The situation under English law was regulated by the received English law under the Common law regime. This application was by...

This study investigates the effect of corporate governance reforms protecting minority shareholders on the firm value measured by Tobin’s Q. Using the difference-in-differences estimation and a large international sample from 65 countries for the period 2005-2018, the results show that the...

This research paper explores the challenges faced by minority shareholders in India and examines the legal framework and mechanisms available for protecting their rights. Minority shareholders play a vital role in the corporate landscape, holding a relatively small portion of shares without...

Using a panel of controlled European banks, we examine whether board structures that include directors that are related to minority shareholders can be an effective corporate governance mechanism to limit expropriation by controlling shareholders, without exacerbating risk. We find that the...

Singapore -a common law origin first world country has a built-in system of reasonably adequate investors' protection with high degree of security of property right. Consistent therewith the present paper empirically demonstrates that minority shareholders extract dividend from the firms as an...

Excess control rights by inside shareholders have been documented to hurt minority shareholders. This paper shows that such governance feature may benefit creditors. Using a sample of U.S. dual-class firms, I show that these firms take less operational and financial risk than similar...