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Resrarch On The Influence Of Political Association On The Shareholding Of Foreign Tnvestors

Posted on:2019-11-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y P JiangFull Text:PDF
GTID:2416330545966245Subject:Finance
Abstract/Summary:PDF Full Text Request
How do investors view the political connection between business and government?Political connections can be both good for business(such as more government subsidies,higher tax incentives,etc.)and can be bad for business(for example,higher political risk).Domestic and foreign scholars have studied the influence of political association on corporate value and corporate governance and performance,but there is little literature to study the influence of political association on the shareholding of foreign investors.China's listed companies are closely related to the government,and it is of practical significance to study the influence of political association on the preference of foreign investors.This article is based on large sample of Chinese listed companies from 1999 to 2016 panel data,combined with China's capital market opening special system background,using manual collection can be subdivided into the overseas shareholders of data source,study the political relationship between enterprises and government how to influence foreign investors holding behavior.Take a variety of different methods to measure the foreign shareholders,in this paper,the main findings include:(1)In the control of the enterprise scale,the leverage and annual fixed effects and industry influence factors,such as political association and the foreign investor holds significant negative correlation,that enterprise and government,which is the strength of ties between government and enterprises,foreign investors holding the lower.(2)In foreign investors,the political association with foreign institutional investor holding significant negative correlation,and foreign individual investors holdings has significant negative correlation,that with the stronger political association,foreign institutional and individual investors holding are reduced.(3)The influence of different types of political association on the shareholding of foreign investors is heterogeneity.The political association of the chairman,CEO and chief financial officer is significantly negatively correlated with the shareholding of overseas investors,while the political association of the independent director has not found its significance in the shareholding of foreign investors.The main empirical results of this paper have good robustness for different sample selection criteria and variable measurement methods.
Keywords/Search Tags:Political Connection, Foreign Investors, Foreign Institutional Investors, Foreign Individual Investor, Holding Preference
PDF Full Text Request
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