Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong

被引:482
作者
Cheung, Yan-Leung
Rau, P. Raghavendra
Stouraitis, Aris
机构
[1] Purdue Univ, Krannert Grad Sch Management, W Lafayette, IN 47907 USA
[2] City Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China
关键词
international corporate governance; legal systems; expropriation; connected transactions; pyramids; tunneling; propping;
D O I
10.1016/j.jfineco.2004.08.012
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We examine a sample of connected transactions between Hong Kong listed companies and their controlling shareholders. We address three questions: What types of connected transactions lead to expropriation of minority shareholders? Which firms are more likely to expropriate? Does the market anticipate the expropriation by firms? On average, firms announcing connected transactions earn significant negative excess returns, significantly lower than firms announcing similar arm's length transactions. We find limited evidence that firms undertaking connected transactions trade at discounted valuations prior to the expropriation, suggesting that investors cannot predict expropriation and revalue firms only when expropriation does occur. (c) 2006 Elsevier B.V. All rights reserved.
引用
收藏
页码:343 / 386
页数:44
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