Mutual funds' ownership and firm performance: Evidence from China

Journal of Banking and Finance

Volumn 32, Issue 8, 2008, Pages 1552-1565

  Yuan, Rongli ^a   Xiao, Jason Zezhong ^b   Zou, Hong ^c  

^a Renmin Business School   (China)

^b CARDIFF UNIVERSITY   (United Kingdom)

^c CITY UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

China; Firm performance; Institutional ownership; Mutual funds; Shareholder activism

Indexed keywords

EID: 46749151307     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2007.08.001     Document Type: Article

References (56)

1. Admati A.R., Pfleiderer P., and Zechner J. Large shareholder activism, risk sharing, and financial market equilibrium. Journal of Political Economy 102 (1994) 1097-1130
2. Allayannis G., and Weston J.P. The use of foreign currency derivatives and firm market value. Review of Financial Studies 14 (2001) 243-276
3. Allen F. Do financial institutions matter?. Journal of Finance 56 (2001) 1165-1175
4. Anderson R.C., and Reeb D.M. Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance 58 (2003) 1301-1328
5. Bai C., Liu Q., Lu J., Song F., and Zhang J. Corporate governance and market valuation in China. Journal of Comparative Economics 32 (2004) 599-616
6. Belev B. Institutional investors in Bulgarian corporate governance reform: Obstacles or facilitators?. Journal of World Business 38 (2003) 361-374
7. Bennett J.A., Sias R.W., and Starks L.T. Greener pastures and the impact of dynamic institutional preferences. Review of Financial Studies 16 (2003) 1203-1238
8. Chen K., and Yuan H. Earnings management and capital resource allocation: Evidence from China's accounting-based regulation of rights issues. The Accounting Review 79 (2004) 645-665
9. Chen Z., Li D., and Moshirian F. China's financial services industry: The intra-industry effects of privatization of the Bank of China Hong Kong. Journal of Banking and Finance 29 (2005) 2291-2324
10. Chen, Z., Xiong, P., 2001. Discounts on illiquid stocks: Evidence from China. Yale ICF Working Paper No. 00-56, Yale University.
11. China Securities Daily, Equity funds outperform the market index, open-end fund close to 1800 billion, July 2, 2007, Available online at: http://finance.sina.com.cn/money/fund/20070702/05283743095.shtml.
12. China Securities Regulatory Commission (CSRC), 2000. Experimental rules on open-end mutual funds. The CSRC, Beijing, China.
13. Chung K.H., and Pruitt S. A simple approximation of Tobin's Q. Financial Management 23 (1994) 70-74
14. Claessens, S., Djankov, S., Pohl, G., 1997. Ownership and corporate governance: Evidence from the Czech Republic. World Bank, Washington, DC.
15. Clay, D.G., 2002. Institutional ownership and firm value. University of Southern California Working Paper.
16. Coles J.L., Daniel N.D., and Naveen L. Managerial incentives and risk-taking. Journal of Financial Economics 79 (2006) 431-468
17. Cornett M.M., Marcus A.J., Saunders A., and Tehranian H. The impact of institutional ownership on corporate operating performance. Journal of Banking and Finance 31 (2007) 1771-1794
18. David P., and Kochhar R. Barriers to effective corporate governance by institutional investors: Implications for theory and practice. European Management Journal 14 (1996) 457-466
19. Dewenter K., and Malatesta P.H. State-owned and privately owned firms: An empirical analysis of profitability, leverage and labor intensity. American Economic Review 91 (2001) 320-334
20. Drucker P.F. To end the raiding roulette game. Across the Board 5 (1986) 30-39
21. Edwards J., and Nibler M. Corporate governance in Germany: The role of banks and ownership concentration. Economic Policy 31 (2000) 237-260
22. Falkenstein E.G. Preferences for stock characteristics as revealed by mutual fund portfolio holdings. Journal of Finance 51 (1996) 111-135
23. Gen J. A Study of Institutional Investors in China (2002), The Renmin University of China Press, Beijing, China
24. Gompers P.A., and Metrick A. Institutional investors and equity prices. The Quarterly Journal of Economics 116 (2001) 229-259
25. Grier P., and Zychowicz E.J. Institutional investors, corporate discipline and the role of debt. Journal of Economics and Business 46 (1994) 1-11
26. Gul F.A. Government share ownership, investment opportunity set and corporate policy choices in China. Pacific-Basin Finance Journal 7 (1999) 157-172
27. Gul, F.A., Zhao, R., 2000. Corporate governance and performance in Chinese listed companies. City University of Hong Kong Working Paper.
28. Hartzell J.C., and Starks L.T. Institutional investors and executive compensation. Journal of Finance 58 (2003) 2351-2373
29. Helwege J., and Liang N. Is there a pecking order? Evidence from a panel of IPO firms. Journal of Financial Economics 40 (1996) 429-458
30. Hermalin B., and Weisbach M. The effects of board composition and direct incentive on firm performance. Financial Management 20 (1991) 101-112
31. Himmelberg C.P., Hubbard G.R., and Palia D. Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of Financial Economics 53 (1999) 353-384
32. Jing, H., 2004. Analyzing the preference of financial institutions through a one-year dataset. China Securities Journal, October 26.
33. Kennedy P. A Guide to Econometrics. fourth ed. (1998), Blackwell Publishing, Oxford
34. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R.W. Investor protection and corporate governance. Journal of Financial Economics 58 (2000) 3-28
35. Li, D.H., Moshirian, F., Nguyen, P., Tan, L.W., 2005. Managerial ownership and firm performance: Evidence from China's privatizations. University of New South Wales Working Paper, Australia.
36. McConnell J.J., and Servaes H. Additional evidence on equity ownership and corporate value. Journal of Financial Economics 27 (1990) 595-612
37. Morck R., and Nakamura M. Banks and corporate control in Japan. Journal of Finance 54 (1999) 319-341
38. Morck R., Shleifer A., and Vishny R.W. Management ownership and market valuation: An empirical analysis. Journal of Financial Economics 20 (1988) 293-315
39. National People's Congress (NPC), 2003. Mutual Funds Law. The NPC, Beijing, China.
40. Qi D., Wu W., and Zhang H. Shareholding structure and corporate performance of partially privatized firms: Evidence from listed Chinese companies. Pacific-Basin Finance Journal 8 (2000) 587-610
41. Shleifer A., and Vishny R.W. Large shareholders and corporate control. Journal of Political Economy 94 (1986) 461-488
42. Short H., and Keasey K. Institutional shareholders and corporate governance in the United Kingdom. In: Keasey K., and Wright M. (Eds). Corporate Governance: Responsibilities, Risks and Remuneration vol. 2 (1997), John Wiley and Sons, New York 631-666
43. Smith C.W., and Watts R. The investment opportunity set and corporate financing, dividend and compensation policies. Journal of Financial Economics 32 (1992) 263-292
44. Smith P.M. Shareholder activism by institutional investors: Evidence from CalPERS. Journal of Finance 51 (1996) 227-252
45. Sun Q., and Tong W.H. China share issue privatization: The extent of its success. Journal of Financial Economics 70 (2003) 183-222
46. Tenev S., Zhang C., and Brevort L. Corporate governance and enterprise reform in China: Building the institutions of modern markets (2002), World Bank and the International Finance Corporation, Washington DC
47. Tian, G.L., 2001. State shareholding and the value of China's modern firms. London Business School Working Paper.
48. Villalonga B., and Amit R. How do family ownership, control and management affect firm value. Journal of Financial Economics 80 (2006) 385-417
49. Wahal S. Pension fund activism and firm performance. Journal of Financial and Quantitative Analysis 31 (1996) 1-23
50. Wei Z., Xie F., and Zhang S. Ownership structure and firm value in China's privatized firms: 1991-2001. Journal of Financial and Quantitative Analysis 40 (2005) 87-108
51. Wiwattanakantang Y. An empirical study on the determinants of the capital structure of Thai firms. Pacific-Basin Finance Journal 7 (1999) 371-403
52. Woidtke T. Agents watching agents? Evidence from pension fund ownership and firm value. Journal of Financial Economics 63 (2002) 99-131
53. Xu X., and Wang Y. Ownership structure and corporate governance in Chinese stock companies. China Economic Review 10 (1999) 75-98
54. Yu Q., Du B., and Sun Q. Earnings management at rights issue threshold: Evidence from China. Journal of Banking and Finance 30 (2006) 3453-3468
55. Zhou X.M. Ownership and performance: Comment. Journal of Financial Economics 62 (2001) 559-571
56. Zou H., Adams M.B., and Buckle M.J. The corporate purchase of property insurance: Chinese evidence. Journal of Risk and Insurance 70 (2003) 289-314