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 AJIBM  Vol.7 No.4 , April 2017
The Impact of Qualified Foreign Institutional Investors on Controlling Shareholder’s Tunneling: Evidence of Listed Companies in China
Abstract: Based on the data of the listed companies of Shanghai Stock Exchange and Shenzhen Stock Exchange from 2012 to 2015, we studied the impact of qualified foreign institutional investors (QFII) on the tunneling of listed companies’ major shareholders. The results show that QFII can effectively control the behavior of tunneling of the substantial shareholder of listed companies, and the inhibitory effects are different in the different ownership companies. QFII can inhibit the behavior of tunneling of the substantial shareholder of state-owned enterprises and private enterprises, and the inhibition effect is better in private enterprises. However, there is no inhibition effect on the behavior of tunneling of the substantial shareholder of foreign-funded enterprises.
Cite this paper: Li, Z. (2017) The Impact of Qualified Foreign Institutional Investors on Controlling Shareholder’s Tunneling: Evidence of Listed Companies in China. American Journal of Industrial and Business Management, 7, 522-536. doi: 10.4236/ajibm.2017.74038.
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