Yuan, Rongli, Xiao, Jason Zezhong ![]() |
Abstract
Mutual funds have emerged and rapidly developed since 2000 in China. This study tests empirically the impact of mutual funds’ ownership on firm performance in China, using a large sample for the period of 2001–2005. We find that equity ownership by mutual funds has a positive effect on firm performance. The result is robust to several measures of firm performance and various estimations. Our finding supports recent regulatory efforts in China to promote mutual funds as a corporate governance mechanism and suggests that pooling diffuse minority interests of individual shareholders who are prone to free-rider problems via mutual funds is beneficial.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management H Social Sciences > HG Finance |
Uncontrolled Keywords: | China; firm performance; institutional ownership; mutual funds; shareholder activism |
Publisher: | Elsevier |
ISSN: | 0378-4266 |
Last Modified: | 19 Oct 2022 08:58 |
URI: | https://orca.cardiff.ac.uk/id/eprint/19616 |
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