Online citations, reference lists, and bibliographies.
Referencing for people who value simplicity, privacy, and speed.
Get Citationsy
← Back to Search

Expropriation Of Minority Shareholders In Politically Connected Firms

Meijun Qian, H. Pan, B. Yeung
Published 2010 · Business

Save to my Library
Download PDF
Analyze on Scholarcy Visualize in Litmaps
Reduce the time it takes to create your bibliography by a factor of 10 by using the world’s favourite reference manager
Time to take this seriously.
Get Citationsy
The conflict of interests between controlling and minority shareholders is an important issue in firms with concentrated ownership. We document that the controlling shareholders’ expropriation behavior through tunneling or self-dealing is much severer in politically connected firms. The results are not due to firms with high tendency of expropriation establishing connection for protection, but because of a less concern of capital market punishment. We show that expropriation is severer only in firms whose political connection secures bank loan access. These findings are consistent with the view that the firms’ financing condition is an important dimension that influences corporate governance.
This paper references
Inherited Wealth, Corporate Control and Economic Growth: the Canadian Disease
R. Morck (1998)
Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis
Karl V. Lins (2001)
Does Corporate Governance Matter to Bondholders
Mark Klock (2004)
Politicians and Firms
A. Shleifer (1994)
The Quality of Accounting Information in Politically Connected Firms
P. Chaney (2009)
Do Lenders Favor Politically Connected Firms? Rent Seeking in an Emerging Financial Market,
A. I. Khwaja (2005)
Tunneling or Propping: Evidence from Connected Transactions in China
Q. Peng (2006)
Do Politically Connected Boards Affect Firm Value?
E. Goldman (2006)
Corporate governance in the Asian " nancial crisis q
Simon Johnson (1999)
Political Connections and Preferential Access to Finance: Role of Campaign Contributions
S. Claessens (2007)
Estimating the Value of Political Connections
Raymond J. Fisman (2001)
Ferreting Out Tunneling: An Application to Indian Business Groups
M. Bertrand (2000)
Tunneling, Propping, and Expropriation: Evidence from Connected Party Transactions in Hong Kong
Y. Cheung (2006)
Cronyism and Capital Controls: Evidence from Malaysia
Simon Johnson (2001)
Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market
Atif R. Mian (2004)
Political Connections and Minority-Shareholder Protection: Evidence from Securities-Market Regulation in China
H. Berkman (2010)
Political connection *Bank loan -0
An index of banking competitiveness that incorporates the deposits and loan completions from indexes 1 and 2
Fan (2007)
Political Connections, Financing and Firm Performance: Evidence from Chinese Firms,
H. Li (2008)
An index of banking competitiveness based on the ratio of nonstate-owned banks’ deposits to total bank deposits in the province. We use the average of the 2003 to 2005 indexes in our analyses
Fan (2007)
An index of property rights protection
Fan (2007)
The Ultimate Ownership of Western European Corporations
M. Faccio (2001)
The Impact of Shareholder Control on Bondholders
M. Cremers (2004)
Using daily stock returns: The case of event studies
S. Brown (1985)
The Law and Economics of Self-Dealing,
S. Djankov (2008)
Cronyism and capital controls: evidence from Malaysia☆
S. Johnson (2003)
Politically Connected Firms: the case of Spain
Joan Gilabert (2011)
NERI Index of Marketization of China’s Regions Economics Science Press, City (in Chinese)
G. Fan (2007)
Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms
Joseph P. H. Fan (2007)
Institutions, Ownership, and Finance: The Determinants of Profit Reinvestment Among Chinese Firms
R. Cull (2004)
Tunneling through intercorporate loans: The China experience☆
G. Jiang (2010)
Law, Finance, and Economic Growth in China
Franklin Allen (2005)

This paper is referenced by
Managerial ability, political connections, and fraudulent financial reporting in China
Z. Wang (2017)
The stock market implication of political connections: evidence from firms' dividend policy
Jerry Cao (2012)
National governance, corporate governance and firm performance : empirical evidence from two MENA countries, Jordan and UAE
H. AlMustafa (2017)
Three Essays on Corporate Governance and Politically Connected Firms
Justin Mindzak (2017)
Profit redistribution in family-controlled, group-affiliated publicly - Listed corporations in Malaysia
Ng Sin Huei (2013)
Politically Connected Firms and Earnings Informativeness in the Controlling Versus Minority Shareholders Context
Carolina Bona�?Sánchez (2013)
Bank Financing and Corporate Governance: Empirical Evidence from Vietnam
T. Huynh (2017)
The Effects of Political Connections on the Level and Value of Cash Holdings: International Evidence
Yuanto Kusnadi (2011)
Political Connections and the Cost of Equity Capital
Narjess Boubakri (2012)
The Power of Networks: Evidence from the Financial Sector in the UK
H. Farag (2017)
The effect of affiliation structure on the performance of pyramidal business groups
Marina Amado Bahia Gama (2021)
Corporate governance in emerging markets: A survey
S. Claessens (2013)
Codetermination: The Necessary Presence of Workers on the Board. A Mathematical Model
Donato Forcillo (2017)
The impact of political connections on Chinese listed firms : a thesis presented in fulfilment of the requirements for the degree of Doctor of Philosophy in Finance at Massey University, Palmerston North, New Zealand
X. Chen (2016)
Corporate Governance in Malaysia: A Glass Half Full?
S. H. Ng (2012)
Innovative strategies and corporate profitability: the positive resources dependence from political network
S. Nguyen (2020)
Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
Salau Abdul Malik (2017)
Controlling Shareholder, Expropriations and Firm’s Leverage Decision: Evidence from Chinese Non-Tradable Share Reform
Gary Gang Tian (2011)
Political Connections and Stock Liquidity: Political Network, Hierarchy and Intervention
M. Ding (2014)
Politically Connected Firms in Spain
Silvia Guerra Pérez (2015)
olitically connected firms in Spain ilvia
G. Pérez (2015)
Does the market care about investor protection practices in China?
Y. Cheung (2018)
The agency cost of political connections: Evidence from China's File 18
Y. Hu (2020)
Political connections, legal environments and firm performance around the world
Caiji Pang (2020)
Auditor Choice in Politically Connected Firms
O. Guedhami (2013)
Corporate Governance in Emerging Markets: A Survey
Stijn Claessens (2012)
The Relationship between Corporate Governance and Expropriation of Minority Shareholders’ Interests
M. A. Hamid (2016)
Tres ensayos sobre el papel de las conexiones políticas en el comportamiento corporativo en un contexto caracterizado por la presencia de accionistas dominantes
G. Pérez (2015)
Politically connected boards, family and business group affiliations, and cost of capital: Evidence from Indonesia
J. Joni (2020)
Political connections, auditor choice and corporate accounting transparency: evidence from private sector firms in China
Y. Liu (2017)
Politically Connected Firms in Poland and Their Access to Bank Financing
I. Hasan (2013)
Tunneling : related party transactions of ASEAN listed firms
A. Juliarto (2012)
See more
Semantic Scholar Logo Some data provided by SemanticScholar